China's auto manufacturing industry must combine openness and self-development

Recently, the National Development and Reform Commission and the Ministry of Commerce issued the 2011 Revision of the Guidance Catalogue for Foreign Investment Industries (hereinafter referred to as the new “Catalogue”). Taking into account the requirements for the healthy development of the automobile industry, the automobile manufacturing items will be removed from the “encouragement” category. It is also the first time since 2007 that the country has changed the guidelines for foreign investment in the automobile industry.

In 2011, the growth rate of China's vehicle manufacturing industry slowed down, the growth rate of production and sales contracted, and the relationship between supply and demand in the market changed significantly. At the same time, the pollution problems caused by urban traffic congestion and automobile exhaust have also become increasingly prominent. In this case, all the ministries and commissions of the country have also issued measures in succession, which opened the prelude to the regulation and control of the development of the automobile industry. Before the introduction of the new Catalogue, the National Development and Reform Commission had made it clear that the joint venture automobile company must meet the conditions for the production of new energy vehicles and independent brands in order to obtain new production capacity.

The significance of this series of measures is not only to suppress the expansion of excess capacity, but also to optimize the relationship between the opening up of the automotive industry and self-development.

The development of the automobile industry has become an industry with extremely high international dependence so far. No country or automobile manufacturer can completely establish the entire upstream and downstream industry chain, and in all aspects such as R&D, parts procurement, production, logistics and sales. All must inevitably open up international cooperation. Take component purchase as an example. For some auto manufacturers, the cost/quality ratio of international procurement for parts and components is much higher than that of local production. Independent brands such as Geely, Chery, and Brilliance have already gained momentum through internationalization. . Therefore, removing the entire automobile manufacturing item from the "encouraged category" does not inhibit the international cooperation of China's auto industry, but instead places the focus of opening on the areas most needed by the domestic automobile industry.

Of course, while being reasonably open, it is even more necessary to place self-development in the most critical position. In terms of key technologies that are related to core competitiveness, there is still a technological blockade that cannot be broken. Therefore, it is necessary to seek breakthroughs in independent research and development capabilities. From the national perspective, only the promotion of targeted basic science research can provide intellectual support for the development of automotive core technologies. From the perspective of parts and components manufacturing industry, for the past 10 years since China's accession to the WTO, it has indeed failed to achieve a breakthrough and its share has instead The foreign suppliers that are tied up with the vehicle companies continue to seize, but the parts suppliers and the vehicle companies have a relationship of rising and rising. It is necessary to promote the performance of the entire vehicle through the technological breakthrough of parts and components. China needs to have its own Bosch, Denso, MOBIS; From the perspective of vehicle companies, we should avoid impetuous, truly down-to-earth technology accumulation, integration of resources, and create truly competitive products.

The opening degree of the Chinese auto industry will inevitably be higher in the future, but only through reasonable guidance, adjust the investment structure, at the same time pay attention to self-accumulation and development, and highlight the cultivation of core competitiveness, we can truly rank among the international automobile powers.