For the well-to-do Chinese, losing a lawsuit in the international community is not a glorious thing. Therefore, when we see news reports such as “China’s parts disputes China’s final trial failureâ€, it is inevitable that ordinary readers will have a hard time cutting. Some netizens even left a message after Tencent’s auto news link, saying that it was necessary to rush to join the WTO.
However, this time around the loss of the Sino-European spare parts dispute, I think we are still not the last loser. On the contrary, from this litigation initiated by European and American countries, the Chinese government and enterprises have learned a lot, and more importantly, during the three-year dispute, domestic vehicles and parts and components companies have grown rapidly. The proportion of parts procurement in China has also increased significantly.
To put it plainly, we lost an international trade lawsuit, but it won a valuable three years for the development of the entire automobile industry. In fact, in the past three years, although Mercedes-Benz, BMW and Volvo, etc. The clearly defined measures to increase the localization rate of parts and components have various degrees of boycotts and complaints, but they have to work toward this goal. Because Audi, the leader of this level of market, has already started to increase the pace of localization, followers will have to take "follow-up" measures.
As for automakers such as Honda, Toyota, Nissan, Volkswagen, PSA and General Motors, Ford and other non-luxury car brands, the effect is even more pronounced. In order to actively participate in the Chinese market competition and seize more market share, the only effective way for them is to move parts and components support systems to China as much as possible and use local advantages of lower labor costs to produce more lethal prices. Car products.
Now, it can be foreseen that whether it is a luxury car brand such as Mercedes-Benz BMW or a non-luxury car brand like Volkswagen Toyota, in addition to increasing the localization pace in terms of increasing the localization rate of parts and the proportion of local parts procurement. And efforts, these multinational companies have no other way out. Even if the requirements of the WTTO Game Rules are met, the Chinese government will cancel the standards for the localization rate of parts and components, and this trend will not change.
As for imported models that were not originally intended to be made in China (such as Subaru, Porsche, Land Rover, Maserati, etc.), China’s defeat in this dispute may be good news for them. Because of the pressure imposed by the tariff cuts of the WTO, once the 25% vehicle tariffs on imported cars have fallen, the prices of the above-mentioned brand models after entering the Chinese market are bound to fall significantly. Some imported car brands that are popular in sales can even “return to the old business†and simply find a workshop for CKD (complete parts assembly) or SKD (half parts assembly).
Rethinking more than three years ago, the Chinese government introduced relevant policies to combat the illegal assembly of automobiles. On April 1, 2005, China began to implement the "Administrative Measures for the Import of Auto Parts That Constitute the Characteristics of Complete Vehicles", levying the same tariff (28%) as the entire vehicle for parts that equal or exceed 60% of the total vehicle value, instead of China. The 10% to 14% tax rate specified in the WTO accession agreement. Later, the European Union, the United States, and Canada believed that China was suspected of discriminating against foreign taxation on imported auto parts, and was intended to encourage Chinese auto makers to use domestic auto parts.
The author speculated that if the momentum of large-scale assembly of imported cars is rekindled, the results may be unfavorable for domestic-level joint venture brand vehicles such as the Accord, Camry and Magotan. However, in order to flaunt the concept of original imports, there should not be any brand to do this: abandoning the profits of bicycles but pursuing the so-called scale effect of assembling imports is, to a large extent, not worth the candle. At least for a consumer-oriented "word of mouth" imported car brand, this approach is unwise.
From this perspective, the European and American countries that initiated the lawsuit war even if the Chinese government has cancelled the standards for the localization rate of parts and components, which in turn will give them more job opportunities for auto parts companies? Is it because localization rates have been eliminated, and Bots, Denso, Delphi, and BorgWarner, and other multinational parts suppliers, will move the Chinese factories to the United States, Japan, and Germany? The answer is obviously negative! Therefore, the European and American countries did indeed lose out in this time-consuming and laborious litigation war.
However, through such a lawsuit, we should also introspect ourselves. Since it has joined the WTO, it should follow the rules of the WTO. Although the starting point for setting the standard for the localization rate of vehicle parts and components, our starting point is good, that is, in order to combat illegally assembling imported vehicles, such gray transactions, but from the perspective of foreign parts manufacturers, it is inevitable that there is "protection of the country zero "The part company" is suspected. Because in the future when using the WTO rules, we should try to avoid all possible policy risks.
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