“By joint venture and cooperation, the parts support system for the entire vehicle company has gradually been established.†Recently, Chen Bingyan, deputy director of the Policy Research Association of the China Association of Automobile Manufacturers, commented on the joint venture and cooperation in China's auto parts industry during the 30 years of reform and opening up.
Before the reform and opening up, the domestic truck parts industry has begun to take shape, but the car parts industry is still blank.
In 1985, with the launch of the Shanghai Volkswagen sedan joint venture project, with the joint efforts of both Chinese and foreign parties, more than 30 car parts joint ventures were announced, accelerating the domestic production of domestic car parts and boosting the development of the domestic car industry.
According to Chen Bingyan, before China's accession to the World Trade Organization, the country’s relevant policies and regulations stipulated that the proportion of parts purchased by automobile companies must be more than 60%. In addition, the state has invested special funds to increase the domestic production of parts and components in China. Therefore, under the strong support of national policies, domestic auto parts companies have developed rapidly. In the course of the expansion of the joint venture, the Chinese learned advanced foreign technology, technology and management experience, and China's passenger car parts supply system was initially established.
After China's accession to the World Trade Organization, the requirement for the localization rate of parts and components for vehicle companies to be more than 60% must be eliminated. Moreover, in the JV component companies, the proportion of foreign ownership may not be limited. The demands of foreign parties for controlling joint-venture enterprises have become increasingly strong. Even the sole proprietorship companies have been established to implement product monopolies and technical blockades against China. Therefore, it has become increasingly difficult for China to learn advanced foreign technology and management experience through joint ventures.
According to Chen Bingyan, although in some key component fields, wholly foreign-owned enterprises monopolize the Chinese market, Chinese auto parts companies have since entered the stage of competition with multinational component companies on the same stage. Competition on the same platform also means learning on the same platform. Although the number of wholly foreign-owned enterprises has increased, they still use Chinese technicians and workers. Through the flow of talented people, Chinese companies have recognized their own gaps, started to target large international parts and components companies, and continuously innovated their production technologies and management models. Through a period of learning accumulation, Chinese companies combine their experience abroad with specific conditions such as domestic markets, culture, and resources, and intensify innovation on the basis of digestion and absorption. This not only promotes a more complete support system for passenger car parts, but also promotes The commercial vehicle component industry has developed rapidly.
It is undeniable that the gap between the advanced level of China and the world has continued to increase in key components and components. For example, as early as the early 1980s, China began research and development of parts such as automatic transmissions, electronically controlled fuel injection systems, and airbags, but due to a lack of technological accumulation, it has not yet mastered core technologies. Chen Bingyan said that in the field of key components, relying solely on joint ventures and cooperation, it is impossible to achieve technological breakthroughs. Only the parts and components companies will take a step forward in R&D to drive the research and development of the entire vehicle company, and it will be possible to narrow the gap between Chinese companies and the world advanced level. Therefore, the next 20 years will be the stage of innovation and development of China's auto parts enterprises. Chinese companies should vigorously cultivate talents and strengthen independent innovation.
Chen Bingyan said that the independent innovation of auto parts companies can be based on self-owned brand vehicle companies. The self-owned brand vehicle companies have the right to purchase parts and components, and they can give priority to the products of their own brand companies. The parts and components companies must work hard to improve their independent innovation capabilities in order to enhance their ability to support their own brands. He believes that while improving the ability of independent innovation, the parts and components companies should also study the supporting relationship between foreign parts companies and vehicle companies together with the entire vehicle company, and strive to explore an auto manufacturer that supports China’s national conditions to support the development of parts and components. The new model that component companies serve for vehicle manufacturers.
Over the past 30 years of reform and opening up, China’s auto parts companies have made remarkable achievements in terms of scale of production, product exports, and technology research and development through technology import. However, Chinese companies only pay attention to the introduction of applied technology, but they ignore the basic research related to the parts and components industry. Chen Bingyan said that due to the late start of China's auto industry, parts and components companies are mostly SMEs and therefore unable to engage in basic research. He believes that the state should shoulder the heavy responsibility of basic research, and research results can be shared by parts and components companies. In the next 20 years, if China's scientific research system can be further improved and the integration of production, education, and research more closely integrated, the country's innovation strategy will truly be implemented. The Chinese auto parts industry will have the basic conditions for innovation and will inevitably be able to usher in new developments.
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