The future development of China's spare parts industry

In the recent period, there have been two major events in the parts and components industry: First, since September 1st, the "Administrative Measures for the Import of Auto Parts That Constitute the Characteristics of the Whole Vehicle" has not been implemented. Second, on September 11th, Obama announced the import. China's tire products carry out a three-year punitive tariff. From the perspective of China, this is a matter of "one in, one out," but it is closely related to the Chinese parts and components industry.

There is no doubt that the Chinese government and enterprises have always been striving for and actively adapting to the efforts to enter the international market. However, I do not know if this effort has caused too much pressure on Europe and the United States. They are always focusing on "Made in China." Counterattack.

When we encounter difficulties, we must stay calm and look for problems from ourselves. This is a consistent way of thinking of the Chinese people and has helped us through many difficulties. Then, in the process of the Chinese automobile industry accepting the world and being accepted by the world, what efforts have we made and where are the problems?

In order to adapt to the WTO agreement, the “Auto Industry Industrial Policy” adjusted the management methods for foreign cars entering China and actively worked hard to enter the international market.

Before China entered the WTO, the 1994 version of the “Auto Industry Industrial Policy” stipulated that the localization rate of the joint venture should reach 40% in the first year and 60% in the second year. The policy restricts the development of KD production and promotes the new joint venture. The development of China's auto-industry chain and China's automobile industry chain led to the emergence of a new generation of independent brands in China.

On December 11, 2001, China officially became a WTO member. According to the results of China’s accession to the WTO, China no longer rigidly controls the localization rate of foreign cars entering the Chinese market, nor does it impose any proportion of imported spare parts in the entire vehicle. limited. At this stage, the KD assembly wind of automobile production has intensified, from the initial CKD (all parts assembly), to the SKD (semi-part assembly assembly), and finally to DKD (assembly assembly). In the worst case, KD annual sales reach 400,000 vehicles.

The 2004 edition of the "Automobile Industry Policy" emphasizes the management of foreign cars entering China through a combination of investment management and trade management. The core of trade management measures is to "consume complete vehicle features" as part of the "same vehicle." According to the taxation rate for complete vehicles, the “Administrative Measures for the Import of Auto Parts That Constitute the Characteristics of Complete Vehicles” was implemented on April 1, 2005, and the same 25% tariff was applied to imported parts that equal or exceeded 60% of the total vehicle value. . At this stage, the output of KD-assembled vehicles has been declining year by year. The joint venture's factory construction, product launch, supply chain localization, and technology center construction in China have all achieved significant development.

However, the "Administrative Measure" has been controversial since its introduction. In October 2006, the United States, the European Union, and Canada appealed to the WTO dispute settlement agency. In a few turns, in mid-December 2008, the WTO Appellate Body upheld the WTO Expert Group’s ruling that China’s involvement in the case violated “national treatment”. After a nine-month consultation, the Chinese government agreed that the "Administrative Measures" will no longer be implemented. However, it is undeniable that it is the existence of this method that has secured four and a half years of valuable time for auto parts companies in China. Today, KD's living space in China is not as good as before. At the same time, it has accumulated valuable experience for China's participation in international auto trade. .

Today, the “Administrative Measures” are no longer implemented. For joint ventures, the KD cost of products with low localization rates will be reduced, the introduction cycle of some products will be shortened, and product planning decision-making risks and fixed asset investment levels will decline. The economics of DKD are highlighted. However, in the long run, even if it is a joint-venture manufacturer, it is a general trend to strengthen local procurement of parts and components. The remote supply chain system is not conducive to rapid response to market demand.

Judging from the development of China's automobile industry, the joint venture's ability to respond to products will further increase, and its R&D and reduction in the driving force for expansion will have a certain impact on the development of the technology level of self-owned brands and local automotive products. At the same time, the reduction in the import costs of Southeast Asian parts will also have an impact on China's parts industry.

From another point of view, the implementation of the “Administrative Measures” aims to promote and protect the development of the domestic parts and components industry. It is hoped that some vehicle manufacturers will bring part of the supply system of high-end car models to China and increase domestic zero. The overall level of the parts industry. However, the increase in the localization rate does not mean that local parts companies can get iron rice bowls. At present, foreign-funded parts and components companies are still majority-owned and joint venture companies in China. The gap in product quality and performance stability of local parts and components companies, and the limitations of low-value-added products, have made them face an increasingly difficult living environment as the domestic auto market progresses. It is by no means a change to the "Administrative Measure" that can be changed. The key is to see the parts companies themselves.

Another dilemma faced by local parts and components companies is the increasingly frequent anti-dumping investigations from various countries. Since 2001, domestic parts and components have achieved great development in the export market with its low cost advantage, but at the same time anti-dumping voices from Europe, the United States, Egypt, India and other countries have continued to give the local parts and components companies a go-global strategy. A huge shadow. In 2009, the governments of the countries affected by the international financial crisis showed stronger resistance to China’s cheap products in order to stimulate the recovery of the local economy. Since January of this year, Chinese auto parts have encountered nearly 20 anti-dumping investigations by various countries. 9 On the 11th, Obama announced that the three-year punitive tariff on China's tire products is likely to further stimulate the enthusiasm of anti-dumping investigations on China's products. The challenge faced by local parts and components companies at a time when a new round of trade protectionism is on the rise. Incremental.

Comprehensively enhancing competitiveness is an old proposition for China's auto parts industry. Then, under the new economic situation, how to seize the country’s strategic opportunities to support independent innovation and the revitalization of the auto industry to promote the optimization of industrial structure and product structure? It is even more urgent to increase the upgrading and technological development capabilities to meet the needs of vehicle development and market needs.

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