China's nine parts of auto parts industry in 2007

**Global Presence of Top Auto Parts Companies in China** Currently, leading global auto parts companies from the Fortune 500 list have fully entered the Chinese market. Renowned names such as Bosch from Germany, Delphi, TRW, Dana, Denso, Aisin Seiki, and Valeo from France are actively involved in key automotive components like powertrain systems, automotive electronics, and body panels. These companies have established their presence across major regions in China, including Northeast China, Beijing, Tianjin, Central China, Southwest China, the Yangtze River Delta, and the Pearl River Delta. Their operations cover a wide range of critical components, forming six major industrial clusters. Despite their large-scale operations, strong technical capabilities, and extensive international experience, these multinational firms still face challenges in China. The country is often seen as a low-cost manufacturing hub rather than an innovation leader. While China has been positioned as a global auto parts procurement center, in practice, this image has been somewhat diminished due to reliance on cheap labor and limited technological advancement. **The Rise of Innovative Chinese Auto Parts Companies** In recent years, a growing number of innovative Chinese auto parts companies have emerged, showcasing the potential of domestic brands. These companies excel in niche markets, achieving differentiated results that help reduce industry homogeneity. They also demonstrate strong innovation capabilities and possess skilled talent teams that continuously develop advanced technologies. Many have integrated into global supply chains, built brand recognition, and gained international competitiveness. With promising development prospects, they are gradually establishing themselves as essential players in the global market. However, challenges remain. The overall level of China’s auto parts industry is still relatively low, with limited competitiveness compared to global leaders. Investment in parts companies lags behind that of automakers, and multinational corporations continue to dominate the market, squeezing local firms. Additionally, there is a lack of long-term strategic cooperation between parts suppliers and automakers, which hinders sustainable growth. **Trade Barriers and the Need for Early Warning Systems** As China’s auto parts exports grow, so do trade barriers. In 2007, several countries, including India, Peru, and Egypt, launched anti-dumping investigations against Chinese auto parts, particularly tires. These measures threaten the competitiveness of Chinese exporters. Most of China’s exported auto parts are low-end products, making them vulnerable to anti-dumping actions. As exports expand into emerging markets like Brazil and India, these countries may impose trade restrictions to protect their own industries. The absence of an effective early warning system exacerbates the problem. Without timely information and proactive strategies, Chinese companies are more likely to face anti-dumping cases. These measures not only affect individual firms but also have broader implications for the entire auto parts and automotive industries, as well as related sectors. **Rapid Growth of Auto Parts Industry Clusters** China’s auto parts industry has seen significant clustering, especially in regions like Jilin’s Changchun, Hubei’s Shiyan, Anhui’s Wuhu, Guangdong’s Huadu, and the Bohai Economic Rim around Beijing-Tianjin-Hebei. These clusters have become key drivers of regional economic development. Currently, over 1,000 industrial parks specialize in auto parts, with about 100 considered major cluster areas. Industry clustering enhances efficiency, reduces costs, promotes innovation, and fosters collaboration between OEMs and suppliers. It also helps in human resource development and the growth of supporting industries, ultimately strengthening the entire automotive supply chain and creating a competitive advantage. **Emergence of Export Bases** Following the Ministry of Commerce’s designation of eight cities as national auto parts export bases in 2006, four more cities were added in 2007. Being recognized as an export base offers significant benefits, including preferential policies at both national and local levels. This “golden signboard” helps companies gain greater visibility and access to support mechanisms that aid in international expansion. **China’s First Self-Developed National V Emission Diesel Engine** On December 7, 2007, Guangxi Yuchai Machinery Group launched China’s first self-developed YC6L-50 V-emission diesel engine. This marked a major milestone in China’s engine R&D, advancing national emission standards by five years. By meeting Euro V standards ahead of schedule, Yuchai demonstrated its ability to compete globally. This breakthrough allowed Chinese car manufacturers to meet European emission requirements, opening up new export opportunities and boosting the international reputation of Chinese engine brands. **Export of Technology and Innovation** In June 2007, Shaanxi Hande Company exported axle technology to India’s AMW Motors, marking the first time Chinese auto assembly technology was exported abroad. This event highlighted the progress of Chinese auto technology and provided a new model for internationalization. Over the years, China’s auto parts exports have evolved from low-value goods to high-tech and capital-intensive products, shifting from the aftermarket to global supply chains. This trend reflects the growing strength of China’s auto industry and its increasing role in the global market. **One-Stop Automotive Service Solutions** In 2006 and 2007, several major auto parts companies, including Goodyear, Shell, DuPont, and Delphi, formed retail partnerships to offer comprehensive services. These collaborations allow consumers to access a wide range of car care products and services under one roof, from tires and oil to batteries and maintenance supplies. This shift towards integrated service models reflects the evolving needs of the aftermarket and the diversification of sales channels. **Improving the Maintenance Market: The “Beijing Auto Maintenance Contract”** In November 2007, Beijing introduced the “Beijing Automobile Maintenance Contract,” aiming to standardize the auto maintenance sector. Although the contract was not yet finalized, it signaled a step toward legal protection for vehicle owners. However, the complexity of the maintenance market and its impact on safety mean the implementation process will be challenging. Stakeholders must be consulted to ensure the contract addresses real issues and avoids oversights.

High Brightness Calcined Kaolin

Chemical index(%)

SiO2

Al2O3

Fe2O3

TiO2

CaO

Na2O

K2O

MgO

52.00±1

45.00±1

≤0.50

≤0.80

≤0.50

≤0.20

≤0.10

≤0.20

hysical Form

Highly Pulverized Powder

ISO Brightness (%)

95.5 Min.

Screen Residue, 325 Mesh (%)

0.005 max

Free Moisture @ 105 deg C (%) as produced

0.5max

pH (28% solids)

6.0-7.0

Specific Gravity (g/cm3)

2.63

Sedigraph Particle Size (%<2μm)

80±2

Oil Absorption (g/100g )

63-68

Bulk Density (kg/m3)

400

Hegman

4.0min

High brightness calcined kaolin

Tianzhijiao Kaolin Branch Of Inner Mongolia Baotou Steel Hefa Rare Earth Co.,Ltd. , https://www.tzj-kaolin.com