Prevent foreign companies from dumping parts and components products in China

Recently, the person in charge of the Ministry of Commerce pointed out in an interview with reporters: “When Chinese auto parts companies encounter foreign anti-dumping attacks, we must increase vigilance, strengthen self-protection, and prevent foreign dumping of auto parts products to China.”

Foreign companies occupy a large share of the Chinese parts market

Currently, more than 70% of the world's top 100 parts suppliers have carried out business in China; wholly-owned or joint ventures of multinational parts companies account for about 50% of the Chinese parts market. In contrast, although there are a large number of local parts and components companies in China, they are small in scale, low in concentration, and have severe competition, resulting in a very low overall industry efficiency.

As China removes its shareholding ratio restrictions on foreign-funded auto parts companies in joint ventures, the “sole proprietorization” trend of multinational auto parts companies in China has spread. It is reported that in less than one year, Deloitte, Mahle, Bosch and other multinational parts companies have established more than 10 new production companies in China, of which more than 90% are wholly-owned enterprises. Since the beginning of this year, three foreign companies have set up wholly-owned R&D centers in China that have invested more than 100 million yuan. Today's focus:

In addition, in Sino-foreign joint venture vehicle companies, China does not possess core technology and lacks the right to speak. The procurement of parts and components is often controlled by foreign parties, making it difficult for Chinese-owned parts and components manufacturers to enter the complete vehicle market.

In this way, foreign-funded parts and components have a large share in the Chinese market, and market competition has become increasingly fierce, resulting in increasing pressure on Chinese-funded parts and components companies.

China's key spare parts market depends on imports

According to the relevant person in charge of the Ministry of Commerce, China’s auto parts and components companies do not have strong supporting capabilities and their capacity for independent innovation is still weak. Most parts and components have low technical content and low added value. In the first quarter of this year, China’s auto parts imports amounted to US$2.777 billion, an increase of 58.1% over the same period of last year. Most of the auto parts imported by China are high-profit, high-value-added key components. Most auto parts exported are low-profit and low-value-added products. The person in charge of the Ministry of Commerce specifically pointed out: "We have monitored and found that in recent years, there have been some key components and parts that have been maintaining a high growth in import volume. Since last year, some foreign parts and components have increased their export volume to China and have The downward trend in prices."

Some Chinese parts and components companies have a certain ability to develop low- and medium-value-added products. However, there is a big gap between the advanced technology of automobile key components and the international advanced level. For example, the Chinese mass production engine for auto parts companies is only equivalent to the international products of the 1990s. There is a big gap between the overall level of the Chinese automobile engine industry and the developed countries. For many advanced automotive electronics products, China is still hard to produce. Therefore, for some high-tech key components, China has to rely on imports.

Take measures to maintain industrial safety

According to the person in charge of the Ministry of Commerce, the Ministry of Commerce established an early warning system for damage in the automobile industry in 2002, which has played an important role in maintaining industrial safety. Through the early-warning mechanism, some parts and components enterprises have deepened their understanding of anti-dumping and other trade remedy measures and strengthened the management of their production and operation. On the other hand, the relevant departments have also established an information release platform to provide public information services for enterprises and to pre-define industrial security work. He said that at present, the depth and breadth of the monitoring of this mechanism are still limited, and the expansion of the industrial safety database has become an important task this year. The monitoring scope of the expanded industrial safety database will be further expanded, which will further deepen the analysis and provide better information services for industries and enterprises.

He added: "If a component company feels that imported products cause dumping and damage to domestic industries, it should pay attention to collecting relevant data and submit a complaint form to the Ministry of Commerce in a timely manner."