From November 8 to November 10, the first meeting between China and U.S. reached important consensus on many aspects. Among them, there are three closely related to the auto industry, including China’s expansion of its opening schedule and roadmap, which will greatly relax the financial industry. Cover market access for the banking industry, securities fund industry and insurance industry; gradually reduce car tariffs appropriately; and start piloting foreign capital shares for special vehicles and new energy vehicles within the scope of the free trade trial zone before June 2018. Financial market access has been further relaxed, auto tariffs have been lowered, pilots in the free trade zone have liberalized the ratio of foreign capital to special vehicles and new energy vehicles. Is such a large degree of openness going to the current automobile industry in China, especially the new energy automobile industry? Impact? How to deal with China's autonomous auto companies? With these questions, a reporter from China Automotive News interviewed experts and enterprises inside and outside the industry. China's new energy auto industry fears shares "With the development of China's auto industry, 'going global' is an inevitable choice for the sustainable development of all automotive products in China, including new energy vehicles. If we can't even face the competition in the domestic market, then we can only stand on the world stage. “Bai Ming, deputy director of the Institute of International Market Research of the Ministry of Commerce, said that the protected market is an unhealthy market. Only by building an open, free-competitive market can relevant companies and products gain true competitiveness. It is conducive to the healthy development of China's new energy automotive market. Li Wanli, an expert from the China Academic Advisory Committee of the China International Engineering Consulting Company, also said in an interview with a reporter from the China Auto Daily that it is necessary to have a correct understanding of opening up. After more than ten years of accession to the WTO, China’s auto industry has continued to compete in a gradually open competition. Development, China has become the world's largest single new car market, which is largely due to the power of competition. Only a truly free and competitive market can bred competitive brands and companies. From this perspective, the opening up of China's new energy vehicle sector is imperative, and relying on China's existing comparative advantages, China's autonomous car companies are fully capable of competing with foreign-funded enterprises on the same platform, and do not need to worry too much. Openness is imperative and opening up will inspire companies’ competitiveness. So, is China's autonomous auto companies ready? Wei Li’s founder and chairman Li Bin’s words may represent the voice of most car companies. "Whether it is the liberalization of foreign investment shares in the Free Trade Zone or the liberalization of the entire new energy vehicle sector, it will have no effect on us." In the new car building force, Wei Li is considered to be a leader, perhaps It is with their own strong power that Li Bin can confidently say that the stock ratio has no effect on them. “Our biggest advantage is understanding the Chinese local market, and we are not weak in research and development, technology, etc. We don't have others. We also have others. What are our reasons for fear of foreign investment?†as Li Bin The new energy automobile industry in China, which has accumulated comparative advantages, is not afraid of foreign capital when it enters the Chinese market. In addition, no matter whether it is a new car enterprise or a traditional car enterprise that has already achieved product marketing, the market positioning of its new energy car products should not be just the domestic market. Li Bin admits that Weilai's products will be oriented to the global market. Since there is courage to participate in the global market competition, the release of the domestic equity joint venture ratio is no longer a matter for them. This confidence is not only from the company, but also from industry experts. Professor Chen Quanshi of the Department of Automotive Engineering at Tsinghua University stated: “At present, the competition in the new energy automobile market in China is very fierce. In this fierce competitive situation, both foreign-funded enterprises, joint ventures, and local companies must meet the need to possess core autonomous technologies. The production and sales of products are sufficient and supportive of these three conditions, and are indispensable. From this point of view, our domestic companies are not lagging behind. Even if the number of joint venture stocks is greater than that, we do not need to worry too much. We are fully capable of participating. Market competition.†He further added that in order for new energy vehicles to achieve better development, they must have an open market and adequate competition. Only in this way can we cultivate competitive brands and enterprises. From this perspective, we can For the new energy auto industry and enterprises, the release of shares may not be a drag, but it will be a positive promotion. Related companies need not worry too much. They must dare to accept market challenges and actively participate in competition. However, the liberalization of shares can attract a large number of foreign car companies to establish wholly-owned enterprises in China? Obviously not. It is worth noting that no matter whether the foreign-funded enterprises in the free trade zone are solely funded or if they are joint ventures with existing new-energy automobile production enterprises, the relevant projects must meet the requirements of the “Regulations on the Management of Newly-built Pure Electric Passenger Carsâ€. According to relevant requirements, it is very difficult for foreign-funded enterprises to establish wholly-owned enterprises for new energy vehicles in China. “Whether from the perspective of grasping China’s national conditions and market or from the requirements of China’s newly established enterprises, foreign-funded enterprises do not necessarily have advantages in establishing their own plants. From the perspective of market environment and commercial behavior, perhaps a joint venture It is their better choice, and how to set up a joint venture stock depends on the specific discussions between the two parties.In an environment where the market is more open to the outside world, Chinese companies rely on a strong market and have certain capital and technical capabilities. In the market competition is not necessarily the weak. "Bai Ming believes that even if the stock ratio is released, it does not necessarily appear that the foreign capital is solely funded to build factories. Joint ventures are still the best choice for foreign companies entering the Chinese market. The impact of tariff reduction is getting smaller and smaller It is not the first time that the reduction of automobile tariffs has been mentioned. Since China’s accession to the WTO, the sound of lowering tariffs will appear almost every other time. In the past ten years after China’s accession to the WTO, China’s auto tariffs have also increased from 70% to 80%. (The tax rate in this article, unless otherwise specified, refers to the average MFN tax rate for passenger cars), which has been reduced to the current 25%. The reduction of automobile tariff rates promised to join the WTO has already been fulfilled on July 1, 2006. At present, although China's automobile tariff rates are much higher than those of developed countries, Japan is already a zero tariff, the US is 2.5%, South Korea is 8%, and the European Union is 10%, but much lower than India, Argentina, Brazil, Mexico and other major developments. country. Of course, China is already the world’s leading and largest exporter of new cars, and it is already the world’s largest market for multinational automotive companies. The level of automotive products produced by these multinational automotive companies in China has basically synchronized with that of developed countries. The cost price of some models is even lower than those in Europe and the United States. China has now established a world-class automotive supply chain. From this point of view, tariffs obviously have some room for downward adjustment. In fact, on a global scale, the more developed the country’s auto industry, the lower the auto tariff, and vice versa. The main purpose of the tariff is to protect the backward domestic auto industry, such as India, Argentina, and Brazil. High tariffs on imported cars are also one of the important measures to encourage foreign companies to build factories in their own countries and develop their auto industry. However, in China, despite the drastic reduction in automobile tariffs in the past decade or so, most multinational car companies still choose to cooperate with local car companies and jointly explore the Chinese market in the form of joint ventures rather than relying solely on exports. The facts also prove that although imported cars have a certain market in China, they do not occupy an important position and have little impact on the development of China's auto industry. However, this does not mean that automobile tariffs have little significance for the development of China's automobile industry. Considering the continuous improvement in the manufacturing level of China's auto industry and the fact that major multinational car companies have established joint venture companies in China, reducing tariffs will have little impact on the consumption structure of China's autos. However, the reduction of tariffs still requires a good grasp of the scale and cannot be too low. "If the tariffs are too low, some multinational car companies may shift their focus to exports and abandon their joint ventures in China. Like South Korea, they are very close to China and their own automobile industry is more developed. If China's car tariffs are too low, They are most likely to focus on exports.†Wu Songquan, chief expert of the China Automotive Technology and Research Center, believes that China’s auto tariffs have room for further reduction, but should not be too low. "Automobile tariffs are closely related to the level of development of a country's indigenous auto industry and are also related to the national conditions of the two economies involved in bilateral negotiations. For example, China and South Korea signed a free trade agreement, each of which put forward special regulations aimed at its own national conditions. Our country is Automobiles and South Korea are agricultural products.†Bai Ming stated that lowering tariffs is an inevitable move for China to implement its WTO accession commitments, including the consensus reached after the meeting between the heads of state of China and the United States. However, China will certainly reduce its tariffs in accordance with its own timetable and roadmap, in accordance with China's national conditions, and in a gradual and orderly manner. There must be a process in between. In this regard, our domestic companies need not worry too much. "China's auto industry is now in a critical period toward becoming a powerful automobile country. If the goal of building a powerful automobile country within 10 years can be achieved as scheduled, then we will also implement automobile tariffs that are compatible with the level of auto power," said Bai Ming. Financial liberalization helps improve service quality "The liberalization of the financial sector, especially the liberalization of banking, securities, and insurance market access, will accelerate the pace of China's financial reform." Bai Ming believes that although China's auto finance has long been liberalized, not in the financial sector. Releasing the scope, however, the liberalization of the overall financial industry will promote the reform of China's financial sector, especially the improvement of the quality of financial services, which will bring great benefits to the development of China's auto industry. "Take banks as an example. The financial services of most banks in China are not in place, and most of them still remain in the business of deposits and loans. While foreign financial institutions that develop better are mostly service-oriented, if you open up through finance, you can use foreign finance. The introduction of institutional good service experience will greatly promote the service quality of our financial industry, said Bai Ming. At present, the popularity of auto finance in China is not high. This aspect has a lot to do with the traditional concept of consumption of Chinese consumers. On the other hand, it may also be related to the level of service of auto finance in China. If the service level of the financial industry improves, The development of auto finance may also follow the trend of “big rise†and usher in faster growth. In addition, as a capital-intensive industry, automobiles have a strong dependence on the financial industry. Especially in the current circulation system, China’s auto dealer groups have a large demand for funds, and bank interest has even become its main financial pressure. In addition, financing difficulties have also become a common problem faced by upstream and downstream companies in the automotive industry chain including dealers. If the financial market can be further liberalized, it will be able to promote the relaxation of car companies, dealer financing channels, etc., and solve past financing. Difficult and other issues. Steering Pump,Power Steering Pump,Hydraulic Steering Pump,Electric Power Steering Pump GRH , https://www.grhcn.net
