Auto parts exports must guard against trade barriers


At present, China's auto parts exports have formed a good trend. In 2003, China exported 4.31 billion U.S. dollars of auto parts, an increase of 45.1% year-on-year. From January to May of this year, China’s auto parts exports reached US$2.1 billion, a year-on-year increase of 39%. According to statistics, since 1990, China’s auto parts exports have increased year by year. From 1994 to 2003, the average annual growth rate of exports was 26.2%. Industry insiders pointed out that China’s auto parts have entered the international market before the entire vehicle and occupy an important position in the export of the entire electromechanical industry in China. When the export market is still bright, auto parts companies should plan ahead and guard against trade barriers. After more than 10 years of development, the auto parts and components export industry has been developing. China's auto parts industry has initially formed a competitive automobile and parts manufacturing system. Through the introduction of technology, digestion and absorption, continuous innovation, joint venture and cooperation with multinational companies to achieve localization, supporting a variety of models, not only to meet the needs of the domestic market, but some auto and parts products have entered the international market, exports are showing increasing year by year The situation. At present, China’s automobile and parts companies use China’s comparative advantages, and cars and parts have found a convergence with the international automotive industry’s technology and business. For example, Wanxiang Group purchased a company directly in the United States and set up a special marketing agency in the United States, which greatly promoted exports. SAIC Motor Group implemented a global operation project, targeting the world's major automotive industry bases and automotive product distribution centers, and successively formed SAIC North America. There are four overseas companies such as the company. These overseas companies not only help SAIC Group to collect market information, introduce funds and technology, but also greatly promote exports. Wei Jianguo, deputy minister of the Ministry of Commerce and director of the National Electromechanical Products Import and Export Office, believes that the promotion of the export of entire vehicles and parts is in line with the development trend of China's auto and parts industry in coordinating with globalization. At present, most of the world's famous parts and components companies have established joint ventures or wholly-owned companies in China. Their purpose is not only to occupy the Chinese market, but also to use China as a global production base. According to Yang Zhenheng, Secretary General of the Automotive Branch of the China Chamber of Commerce for Mechanical and Electrical Products Import and Export Chamber of Commerce, with the rapid development of the automobile industry, China's auto parts exports have been growing rapidly year by year, and the speed at which parts go out of the country has been much faster than the speed of vehicle exports. He introduced that in 2003, China exported more than 100 auto parts and components, and 114 of them had exported more than 100 million U.S. dollars. Yang Zhenheng believes that traditional products such as car audio, automobile tires, engine parts, etc., with the continuous improvement of the level of technology and product quality, the variety is constantly enriched, still has great export potential in the international market. A number of products such as automotive electrical appliances, brakes, automotive wheels, automotive wiring harnesses, constant velocity joints, brake pads, etc., have occupied an important position in the world. In addition, exports of complete vehicles and auto parts products with high technological content and high added value have increased significantly. In recent years, China's entire vehicle has begun to move toward the international market, has certain international competitiveness in the areas of heavy-duty trucks, micro-cars, and buses, and can export to developing countries in large quantities. Industry insiders believe that there are three major opportunities for the export of auto parts in China: First, the current international auto industry is being regrouped and divided. At the same time, various international manufacturing industries are shifting to China; second, China's auto parts are gradually being produced by labor-intensive industries. The development of products to the relatively high technological level of products, the production of more high-end products and the international automotive market demand and standards are in line with; third, many countries in the world are optimistic about China's auto and auto parts export industries. According to the development plan of the automobile industry announced by the Ministry of Commerce, China has determined that the specific development goals of the auto parts industry are: In the near future, by 2005, the proportion of the supporting market will reach 30%, and the export value of auto and auto parts will reach 15 billion yuan. ~20 billion U.S. dollars; In the long term, the proportion of capital and technology-intensive products will continue to increase. In 2010, the proportion of supporting markets will exceed 60%; the proportion of technology- and capital-intensive products will exceed 60%; exports of auto and auto parts will be increased. To reach 70 billion U.S. dollars, strive to achieve 100 billion U.S. dollars, and form a relatively strong export group or export base. It is understood that the State will establish 10 or so export bases for automobiles and parts with considerable scale on the basis of the already formed automobile and parts belts, in order to increase industrial advantages, expand export groups, and make automobiles and zero Component exports have become one of the pillar industries of China's foreign trade. The hidden dangers behind the high export growth However, while the high growth of auto parts exports, the Chinese Chamber of Commerce for Import & Export of Machinery and Electronic Products issued a warning. Following the textile and audiovisual products, China’s rising auto parts industry may also face trade barriers from the United States. . According to figures released by the American Association of Motor Vehicle and Equipment Manufacturers (MEMA), the annual production value of counterfeit auto parts is US$12 billion, of which some are from India, South Korea, and China. The relevant experts of the Customs and Statistics Department believe that the concern of the United States over the counterfeiting of Chinese auto parts is a dangerous signal for the export of Chinese auto parts. For Chinese auto parts exporters, if they can't quickly improve the quality of their products, they will most likely be threatened by trade barriers. Yang Zhenheng analyzed that despite the rapid growth of China's auto parts exports, the share of exports in the world's total auto and parts market is very small. According to estimates by the World Association of Automobile and Parts Manufacturers, the total world parts market in 2003 was approximately US$1.2 trillion, of which Europe accounted for about 25%, North America had a 30% share, and China’s share was minimal. At present, China's auto parts enterprises are still at a relatively low level. The scale of the company is small, the degree of industrial concentration is low, and product development capabilities are weak. The ability to supply systematic, modular, and electronic products has just started. Most of the domestic components are still supported by domestic automobile companies. For those companies that have already exported, only a few enter the global matching market, and most of the companies still stay in the maintenance market. Due to institutional reasons, a large number of parts factories have a low degree of concentration. A product often has several or even dozens of companies in production, causing the automobile and parts industry to be repeatedly dispersed, small in scale, and of poor quality. At the same time, the parts and components companies themselves have an unreasonable structure, but they are not large-scale but have a complete range of technologies and low levels of specialization. He pointed out that the poor quality of parts and components exports, and some do not meet international standards, has become one of the major factors restricting the export of automobiles and components. Many small businesses are poorly equipped, backward in technology, and cannot guarantee product quality, making it difficult to meet the requirements of the international market. According to investigations, China's auto parts export products are mainly labor-intensive products, and there are few core technologies and intellectual property rights that they own. Take precautions to actively respond to people in the industry. If you do not prepare as soon as possible, Chinese auto parts and components companies that started soon will not be able to fight against the trade barriers of developed countries. Wei Jianguo said that the government will adopt a series of measures to promote the export of automobiles and parts and components. On the one hand, we encourage the merger and reorganization of auto parts companies to form a batch of key enterprises with international competitiveness. The government hopes to train 5 to 10 auto and parts companies with economies of scale in recent years to use it as the main export base. On the other hand, the government will also vigorously promote and support domestic enterprises to successfully enter overseas markets through various international quality certification systems; at the same time, it will continue to improve the export service system for automobiles and parts and standardize export order. He disclosed that the Ministry of Commerce shall increase the support for auto and auto parts export enterprises in the current policy system, and provide funds to the automakers in areas such as brand development funds, export promotion funds for small and medium-sized enterprises, loans for technological transformation loans, and research and development funds. Parts export companies are tilted. It is understood that the state will adopt seven measures to expand the export of automobiles and parts and components so that China will soon become an important production base and supply center for automobiles and parts. The first is to support domestic auto and parts companies to become bigger and stronger. The second is to use the globalization strategy of multinational companies to enhance China's auto and component manufacturing capabilities. The third is to accelerate the construction of auto and auto parts export bases. The fourth is to increase policy support for the export of automobiles and components. The fifth is to promote and support enterprises through various international certifications. Sixth, it is to improve the export service system for automobiles and components. Seventh, standardize export order and curb price wars in overseas markets. Yang Zhenheng believes that in order to truly allow China's auto parts to enter the international market, companies must also pay attention to three issues. First, change your mind. It must be recognized that the world's auto parts and components industry is characterized by organizational grouping, high technology, supply systemization, and business globalization. We must establish the concept and awareness of commodity supply chains and strive to enter the ranks of international procurement. Second, choose the middlemen correctly. Now many international trading companies are looking for domestic manufacturers to do agency business. This is a shortcut to expand the export of Chinese enterprises, manufacturers can use, but we must choose a good professional partner. Third, increase investment in R&D funds and enhance product development capabilities. From the feedback from some big car manufacturers, they believe that the parts manufacturers in China have strong imitation capabilities, while the new product development capabilities are relatively weak. Nowadays, the speed of automobiles is getting faster and faster, and automakers have to launch some new models every year. This requires that the products of supporting plants can keep pace with the development speed of new vehicles. Therefore, only when enterprises increase their research and development efforts can they be favored by large manufacturers. . Yang Zhenheng emphasized in particular that while enterprises are increasing scientific and technological research and development and developing products with independent intellectual property rights, they should consciously regulate export behavior, avoid the flow of fake and shoddy products into foreign markets, maintain the credibility of Chinese products, and avoid giving excuse to developed countries.