“The operational environment of our country’s independent parts and components companies has deteriorated and we are facing tremendous pressure for industrial upgrading.†This is the message from the 2008 China Auto Parts Industry Annual Conference. The deterioration of the operating environment of autonomous parts and components companies and the increase in pressure for industrial upgrading are manifested in the following aspects:
- In July 2008, the implementation of the National III Emissions Vehicle Regulations had a huge impact on the parts and components industry, and the technical bottlenecks of independent parts and components companies were highlighted. Energy-saving and emission-reduction is China's national policy. The relevant laws and regulations will become stricter. The independent parts and components companies must increase their investment in scientific research, master key technologies and key technologies as soon as possible, break the monopoly of key technologies by foreign multinationals, and protect the safety of their own industries.
——After China's accession to the WTO, multinational auto parts companies have fully and deeply involved China's auto market. By 2008, most of the multinational giants of parts and components have set up factories in China to carry out local production. Multinational auto parts companies use our high-quality, low-cost technical talents to expand or build wholly-owned technology companies in China and develop products that are more suitable for the Chinese market. In order to control the core technology and reduce frictions between Chinese and foreign parties, their tendency to require controlling or wholly-owned assets has become increasingly serious, and the market space for independent parts and components companies is getting smaller and smaller.
- The status of parts and exports with low added value, high resource consumption, and lack of brands has not changed fundamentally. In recent years, the export of parts and components has maintained a growth rate of around 25%. In 2007, the amount of foreign exchange earned through exports accounted for more than half of all foreign exchange earned through auto exports, of which foreign-funded enterprises accounted for more than one-third, while parts and components exported by independent companies were more The aluminum wheels, water tanks, glass, and wire harnesses, etc., have low technology added value and are resource-consumption products; there are many parts and components that are exported to other people's home brands.
- The foreign implementation of new technology and environmental protection laws has deteriorated the international trade environment for the export of parts and components. In June 2008, the European Union implemented the REACH regulation, which registered the registration of chemical substances for parts and components imported into the EU. The procedure was cumbersome and expensive.
- Increased intellectual property disputes. In the past two years, China's spare parts enterprises have suffered more legal cases concerning intellectual property rights in foreign companies during their trips to the exhibition. It is reported that during the auto parts exhibition in Frankfurt, Germany this year, two parts and components companies in China were sued by foreign companies. Foreign companies are increasingly tough on Chinese companies' attitudes toward infringement of parts and components. Chinese enterprises should strengthen their understanding of intellectual property rights and enhance their awareness of intellectual property protection.
China’s severe ice and snow disasters this year and the Wenchuan Earthquake, the global financial crisis triggered by the US subprime mortgage crisis, has begun to have an impact on China’s economy. Domestic demand in the vehicle market has been significantly weakened, and exports have also shown a decreasing trend. The market growth rate has slowed down. So far, Shanghai GM, Shenlong, Chery, North and South Toyota, Changan Ford Mazda and Dongfeng Yueda Kia and other vehicle companies, the original adjustment of the target, the total production of hundreds of thousands of vehicles, a serious impact on the parts market, especially supporting market. At present, many parts and components companies are underemployed and their inventories are increasing. It is difficult for funds to be withdrawn in time. Knowledgeable people believe that independent component companies, especially small and medium-sized ones, must turn this “crisis†into “machinesâ€, train themselves hard, improve management, change the mode of growth and development of enterprises according to the principle of sustainable development, and strive to have A bigger, even bigger development.
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