Affected by fluctuations in Sino-Japanese relations in recent years, many Japanese companies have shown a cautious attitude toward high investment in China. However, Japan’s large steel companies have gone against the trend. Under the situation that Japanese companies’ investment in China has stagnated, they have actively entered the Chinese market and increased investment in China.
Why is this? The Japanese media analyzed this.
The Japanese media believes that the first is that China's local steel is "not as good as people." Japan's high-strength steel sheets are made of unique heat treatment technology that is both light and thin, very strong and easy to process. A car (depending on the model) generally uses nearly one ton of steel, and if it is changed to a high-strength steel plate, it can be significantly lighter. A steel company said: “The manufacturers who manufacture cars in China require us to produce high-strength steel sheets, so we decided to invest.†Increasing the use of high-strength steel sheets is seen as a decisive factor in meeting the increasingly stringent Chinese fuel consumption regulations.
Although it is called a high-strength steel plate, its advantages are not only high strength. China itself also has some steel companies producing high-strength steel sheets, but compared with Japanese companies, the lightweight effect is still inferior. Japan's high-strength steel sheets were developed under the strong demand of large auto companies (lightening weight and reducing costs). In this field, Japan is far ahead of competitors in other countries.
Japanese materials that have received much attention in China are not only high-strength steel sheets, but aluminum materials that contribute to the realization of lightweight automobiles have also received widespread attention.
Addressing stringent fuel consumption standards is another major factor beyond the product itself. In the view of the Japanese media, China's new fuel consumption regulations are the main reason for the adoption of high-strength steel and aluminum panels for auto companies. Previously, China's fuel consumption regulations have been looser than Japan and Europe. However, the new car that will be launched after January 2015 in China will be changed from the current standard based on the weight of the car to the “CAFE (Enterprise Average Fuel Economy)†adopted by Europe and the United States. Moreover, it will be raised to the same level as Japan and Europe by 2020. Specifically, since 2015, the average fuel consumption of all models of various auto companies has to reach 6.9 liters per 100 kilometers, and will drop to 5.0 liters per 100 kilometers in 2020.
The reason why the Chinese government is doing this is because China’s air pollution is serious. In the fall of 2013, not only Beijing, Harbin and other cities were also shrouded in severe haze. Air pollution not only affects the health of residents, but also hinders economic activity.
In addition, China's automobile exhaust regulations are becoming more and more strict, and the demand for advanced lightweight technology is increasing. In the face of China's increasingly serious environmental problems, Japanese steel companies have gained business opportunities while contributing.
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