China does not favor shifting parts to the market

The era of market-for-technology is already a thing of the past. In the 1990s, China’s auto industry was in dire need of advanced automotive manufacturing technology, and relying on independent research and development was clearly unable to catch up with the times. When the market gate was just opened, China almost became a garbage dump for European cars. In that era, Europeans came to China as a savior. Their position in China's market is, what low-end car here can be sold, as long as it is equipped with four wheels to run on the line. In fact, this position was not wrong at the time. In this position, Europeans certainly have to deal with their own knock-out technology, take the products that are ready to be eliminated in the European market, and bring them to China to exert their residual heat, and at the same time, help their product lines to upgrade. This kind of buying and selling allows Europeans and foreigners to make money and go for it. Recalling the original Chinese auto race, the heart was sour, but fortunately it was not long before the situation began to improve.

Thanks to taking the road of a market economy, China's economy has developed at a rapid rate, and the Chinese people’s ability to purchase has become stronger and stronger. The automotive products on the market have begun to grow. When Europe’s arrogance is no longer able to bring real profits, they are gradually introducing technology. And these technologies must also be used by Europeans. This situation has still not changed substantially. Today's Europeans no longer regard China as an automobile industry junkyard, but as a banknote printing plant. They started to build cars in China, sell cars in China, and bring their notes back to Europe.

And what China left behind is still the devaluation of cars and cars. And it pollutes our environment every day and crowds our way. For this unfairness, the Chinese government began to say "no", and this "no" word shouted very hard. A few days ago, the National Development and Reform Commission and the Ministry of Commerce issued the "Foreign Investment Industry Guidance Catalogue (Revised in 2011)", which will be implemented on January 30, 2012. The new "Catalogue" will adjust the "automotive vehicle manufacturing" from encouraged to permitted, that is, it will stop encouraging foreign investors to invest in the vehicle manufacturing industry in China. In turn, foreign investors are encouraged to invest in new energy vehicles, and key components for new energy vehicles have been added to encouraged projects.

According to relevant leaders of the Ministry of Commerce, China’s auto industry has made considerable progress through more than 30 years of reform and opening up and foreign investment absorption, especially in the area of ​​vehicle manufacturing. In 2010, the nation’s auto production and sales volume exceeded 18 million vehicles, ranking second in the world for two consecutive years. First, in order to fully meet domestic demand, it also achieved partial exports. The revision of the "Foreign Investment Industry Guidance Catalogue" is intended to adjust the automobile industry policy accordingly. The direction of adjustment is to shift the focus of encouragement from "whole vehicle manufacturing" to "key component manufacturing and R&D." In this context, the new catalog will "automobile manufacturing (less than 50% of foreign investment)" from the encouragement class to allow.

Rao Da, Secretary-General of the CLUCC, believes that under this background, “the state removed foreign investment from the encouragement category of the entire vehicle manufacturing project, stating that it no longer encourages foreign investors to invest in vehicle manufacturing, which is conducive to the integration of major groups and will be Focusing on the development of independent brands, this is good for the Chinese automotive industry."

“At present, China’s auto industry has been over-opened, and more than 100 joint ventures involving auto vehicles have been reached. Foreign capital has come to China to expand its territory.” Rao Da also pointed out that there has also been a trend of “cold cars in cars”, which is in opposition to international trends. The move has stimulated the development of joint ventures and even imported cars, but it has directly suppressed domestic-funded passenger vehicle companies.

The government introduced this policy not because of the protection of its own brand. Actually, as early as at least two years ago, the state had already tightened its policy on foreign investment in China's automobile manufacturing. The adjustment of the “Catalogue” may only be The continuation and manifestation of this policy.

“The faster growth of domestic self-owned brands also makes the space for foreign investment to play a relatively limited role. Deleting automotive vehicle manufacturing from the encouraged category is also considering encouraging better development of domestic enterprises,” said the person concerned at the Economic Research Institute of the National Development and Reform Commission.

It can be seen that after the development of joint-venture vehicle projects, policy makers hope that the investment in automobile industry will be closer to the original target design, that is, to cultivate the local key components industrial chain, and thus create conditions for the further development of independent brand cars.

While removing the entire automobile manufacturing from the encouraged category and adjusting it to allowable categories, the new Catalogue adds nine items of service industry encouragement, including motor vehicle charging stations. At the same time, in the “Transportation Equipment Manufacturing Industry” encouraged by the new “Catalogue”, projects that encourage foreign investment are listed in detail, including: automotive engine manufacturing and engine R&D institution construction, automobile key component manufacturing, and key technology R&D, Automotive electronic device manufacturing and R&D, manufacturing of key components for new energy vehicles.

According to the incident of the acquisition of Saab by General Motors’ “Double Pang”, whoever has mastered the manufacturing technology of key parts and components will be able to hold the right to speak in the market competition of the weak meat.

An auto industry analyst interviewed by the media said that the joint venture could not be replaced by technology, and from the industry's point of view, no new joint venture projects were needed. Now the big brands have basically entered China, and the remaining small brands are losing their attractiveness.

2011 was known as the beginning of the second wave of joint ventures, but from now on, 2011 has become a watershed for policy tightening. On March 9, 2010, GAC Fiat Auto, jointly initiated by Guangzhou Automobile Group and Fiat, was established. In July 2010, Changan Peugeot Citroen Automobile Co., Ltd., co-sponsored by Changan Automobile and PSA Peugeot Citroen, signed a contract. After the two major joint venture projects were made clear, some insiders commented that taking into account the operational capabilities of GAC and Changan, the two joint ventures meant that the joint venture structure of the domestic automobile conglomerates was basically stereotyped, and that new joint venture approvals would be extremely difficult later.

Affected by this, the approval of the joint ventures of Dongfeng Renault, Dongfeng Infiniti, Chery Subaru, and Chery Jaguar Land Rover in the four major joint ventures in the current domestic round of joint ventures may be affected by new shocks. Dongfeng Motor related persons told the media that it is unclear how much the impact of these two projects has been affected; Chery's assistant general manager and the press statement Jin Yibo also said in an interview: “It is inconvenient to evaluate joint ventures and cooperation projects at the moment. ."