On the eve of the opening of Shanghai Pudong 2014 , the " 2014 China Automotive Pudong Forum " co-sponsored by the China Council for the Promotion of International Trade Auto Industry Committee and the China Council for the Promotion of International Trade Shanghai Pudong was successfully held on August 13. The following is a discussion session on the topic “ Investment and Trade Reform in the Pilot Free Trade Zone and Enhancement of the Global Competitiveness of the Automotive Industry â€. Jiang Jian, Vice President of Bosch China Corporate Communications, received a live speech from the reporter!
Reporter: Bosch was originally a global company. Bosch is integrating global resources. In terms of balancing localization and internationalization, what kind of successful experience do you think can be shared with our domestic companies?
Jiang Jian: In fact, I am very emotional about the Free Trade Zone, especially its predecessor Bonded Zone. In my last job, our company’s headquarters was in the Waigaoqiao Free Trade Zone. I worked there for more than 10 years. At the time, so Jane Chang, at the time we all set up a multinational regional headquarters, set up a regional R&D center, and settled in the Waigaoqiao Free Trade Zone. I personally participated and then went through a lot of direct participation in operations. There are also many There is a lot of good advantages in the area, but in fact there are some inconvenient places in the operation. We saw the realization of the free trade zone. When the Free Trade Zone was implemented last year, I had already left Waigaoqiao, but it was also Very emotional, I think this is a further improvement, because in fact, in the Waigaoqiao Free Trade Zone as a productive enterprise, some of the conveniences encountered are good, there have been many conveniences, but with the nature of these enterprises Some changes brought about new challenges. One after another we saw that the free trade zone is trying to solve these problems further. That we set up a free trade area would like to say in terms of personal, corporate parts industry, in fact, we are learning to see how we can help further enhance the development in China in it.
Bosch is a company headquartered in Germany, but we have a very long history in China. Since 1909, we started to set up a trade representative office in China. Therefore, in fact, the history of Bosch in China has been very clear. We are a family. Chinese companies with German DNA, Bosch China is China in China, this is Bosch China's positioning, of course, we have a lot of from the headquarters, from Germany, some technical advantages and accumulation, but this is a position in China is a Chinese company with German genes. We actively participate in the development of Chinese cars. For local Chinese companies, China’s auto market is a very hard direction for us. We have also done some research on the establishment of free trade areas. At present, we have several aspects that have opened up some new ideas for us. In the first aspect, Bosch set up companies in the Waigaoqiao Free Trade Zone, the predecessor of the Free Trade Zone. Those companies are mainly engaged in the import of spare parts, mainly in trade. For the main business, some imported parts come in through this company, in the bonded area In most cases, we still enter our country from the region. Just now I heard some introductions from Director Wang. We have seen that there will be more convenience in the operation of the trade zone. The efficiency of customs clearance will be higher. This is what we are very much looking forward to. This is one.
Secondly, Bosch also does a lot of services. For example, we have not only been in Europe. Now the car has a lot of safe services. If an accident happens, this car will automatically call the call center, call the center, and then organize the rescue to find the surrounding. The hospital for rescue, Bosch already has such an operation center in Europe, this center is in Liverpool, England. Such a model will continue to exist in China in the strengthening of our automotive services, similar demand exists, even in this similar call center our positioning can serve Chinese vehicle companies, we can not only sell our hardware equipment We can also sell our call center services. We have also done some research before. If a foreign-funded company independently operates a call center, if it is going to apply for some operational qualifications of telecommunications, there are currently obstacles to the policy. We also see that there is a possibility of breakthrough in the free trade zone. In this respect, we are also very interested in further exploring this aspect. As an auto parts company, we also have involved some value-added call for owners. The service of the center, we also have the opportunity to do in the free trade zone.
Another piece, we also studied and saw that just now Secretary Wang also mentioned that some equipment maintenance is in large-scale equipment, because Bosch is not only because automobiles account for our spare parts, accounting for more than 60% of our company's sales business. However, Bosch still has industrial equipment, and in particular, we, Bosch Rexroth, is one of the world's leading manufacturers of hydraulic equipment. We have some large-scale equipment and we can establish a maintenance base in the Asia-Pacific region. We feel that the free trade zone also has corresponding advantages. .
Fourth, the convenience of the headquarters, especially the finance, has enabled the regional headquarters to truly realize the characteristics of the regional headquarters. When my previous company set up its headquarters at the time, there were many ideas, but it was very important for the regional headquarters that the fund transfer function was complete. The implementation of liberalization was very difficult in the past. We also expect that the Free Trade Zone will provide a big stage for the headquarters economy in this regard.
So from Bosch's point of view, we have a lot of expectations for the Free Trade Zone.
Reporter: The call center that you just said, in fact, in the several major business sections of the Free Trade Zone, the service sector is a very important piece, and even more important than the manufacturing sector. If you imagine the call center can be put in the free trade zone, Is it possible to make the global call center an integration? Is there such a possibility?
Jiang Jian: The service of the call center is indeed the future, because the president is also here. The auto industry is a very involved one. In addition to manufacturing, sales, and services, this piece has great potential. Of the 23 measures for opening the service industry last year in the Pilot Free Trade Zone, one is actually the opening up of the value-added telecommunications industry. The value-added telecommunications industry is actually seven open initiatives. One of the 7 items is a call center, allowing foreign investment. Already it can be implemented, and companies have already landed, so we can make further communication and exchanges with Jiang Zong here to see whether your project can adapt to settle in the free trade zone. In addition, among the 31 new service opening measures this year, because not only the service industry has been opened up this year, but also the opening measures of the general manufacturing industry, there are two new ones in this year, related to our auto industry. One is The electronic technology of the automotive electronics bus is also the electronic controller of the electronic power steering system. The development and manufacturing of these two items are also open. This can be checked on the Internet, so the reform and opening up of the Pilot Free Trade Zone The automobile industry has already had a number of opening measures. We believe that with the opening of the general manufacturing industry next year or a few years later, the automobile industry will become a focus area for the opening of the free trade pilot zone.
Reporter: Because Bosch is a global enterprise, if a company enters a park, its capacity for self-digestion and self-recycling will be reduced. Its capacity is limited. If the purpose is to reach the border, it must involve the entry problem, Bosch. Is it possible to have more advantages in this area? Or does Bosch have applied some of these favorable conditions for free trade zones around the world in the global logistics distribution, including the supply chain integration process? ?
Jiang Jian: As a multinational company, in fact, there are deep researches on various free trade areas and free trade agreements, such as the ASEAN Free Trade Area, so according to these studies, because some taxes in the ASEAN region are zero. Tariffs, in a multinational company, often on these foundations, especially when some new production bases are generated, will be considered in site selection, so that logistics costs are minimized. However, I would like to point out that from the earliest free trade zone to the current free trade zone, there is actually a great deal of history. In my previous work experience, I did have some of the operating conditions in the bonded area. We have seen the development trend of the Chinese auto industry. That was in the 1990s because companies had the role of balancing foreign exchange. At that time, the proportion of China’s auto parts imports was very large, including several whole vehicle projects, such as the Shanghai GM project. At that time, my company said that because Shanghai GM will put it into production. It will require a lot of equipment to import and use a lot of foreign exchange. Shanghai GM must balance its foreign exchange. So it set up a parts and components company in the bonded area. The original intention of this company was that it was completely exported. Most of the raw materials came from outside, and the bonded area was processed and then exported for foreign exchange in order to balance the pressure on Shanghai GM's foreign exchange. The initial establishment in the bonded area was very reasonable and very convenient, because it was made of large raw materials. Some of them are also imported from the outside. After the export, they are convenient, convenient and good.
However, with the development of China’s auto industry, the export orders have decreased, but the domestic market has risen. At that time, the processing enterprises in the bonded area of ​​the Ministry of Foreign Affairs faced some problems, and its domestic sales ratio became larger and larger. Exports may account for only 10% and 20%. %, With the development of localization of suppliers, suppliers are also Chinese, making its manufacture very complicated and sometimes poorly managed. In case management is not so delicate, it is prone to problems. This is also the Bonded Area later, because these Enterprises have changed. In the late 1980s and early 1990s, this was a very good form of trade, but later it became mainly domestic, and it was sometimes inconvenient in the bonded area. I think that the establishment of the free trade zone once again gave the manufacturing industries in the region, especially those with a long history, some opportunities to revisit how they are more in line with some of their situations.
In addition, I also noted that Minister Wang said that the convenience of the FTA in the future exhibitions will be met. In fact, I encountered many problems in the Waigaoqiao Free Trade Zone. For example, we are a headquarters in the Asia-Pacific region. Our automobile industry often There will be modifications to put some new technology into a car. The car will have to come in. It will not be convenient to come in first because it is not a standard car. This is because many engineers in foreign countries have completely modified the case. The case may still be original. The shells, but all of them have been changed. Entering the bonded area, there are problems with the customs clearance. We need to pull Chery to watch Chery. It is a problem to go out of the bonded area, but this car has to be returned later, for example, in the United States. There are two vehicles in the world or in Europe, and it will be time to return. This is very complicated. Although we were a company in a bonded area at the time, these problems were not a headache every time. I think free trade. Districts can have more convenience. Some of these companies, especially those headquartered in the Free Trade Zone, still have the same needs, like some parts and components industries. There are still seeking. Some policies in the free trade zone allow it to have more room to try this thing. I am very much looking forward to it because I did have some very personal feelings in the past. Especially since the 1990s, the changes in parts and components have been very large and we are advancing with the times. We feel that the establishment of the free trade zone really provides these companies with Some new possibilities.