The hidden dangers behind the high growth of auto parts exports


With the rapid development of the automobile industry, China's auto parts exports have been growing rapidly year by year, and the speed at which parts go out of the country has been much faster than the speed of vehicle exports.


Take Guangdong Province as an example. In 2000, the export value of auto parts in Guangdong was 150 million U.S. dollars. In 2003, the export value had reached 330 million U.S. dollars, and the average annual growth rate was as high as 30% in three years. From January to April 2004, the export of auto parts and components in Guangdong was US$140 million, an increase of 35.8% over the same period of last year, and continued to maintain a good momentum of rapid growth. The level of production technology of relevant companies has also been continuously improved and production capacity has been continuously expanded. At present, Guangdong has identified the automobile industry as one of the important pillar industries, and the export of spare parts is an important part of its automobile industry.


However, at the same time as the high growth of auto parts exports, the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products issued a warning. Following the textile, television, and semiconductor chips, China’s rising auto parts industry may also face trade barriers from the United States.


Customs statistics show that in the first four months of this year, Guangdong auto parts were exported to 99 countries and regions worldwide. Among them, the United States is the largest market for export of auto parts in Guangdong. In 2003, its export value has exceeded 100 million U.S. dollars and reached 130 million U.S. dollars, an increase of 1.5 times over 2000. In the first four months of this year, the United States exported 56.64 million U.S. dollars, an increase of 58.2%, accounting for 43.2% of Guangdong's parts exports, and continued to maintain the momentum of rapid growth.


According to figures released by the United States' Motor Vehicle and Equipment Manufacturers Association (MEMA), the annual value of counterfeit auto parts is estimated to be US$12 billion, of which some are from China, India, and South Korea. Brian M. Dugan, MEMA's director of international affairs, said that in the past two years, the number of counterfeit auto parts produced in China has skyrocketed. US officials began to pay more and more attention to the issue of counterfeit auto parts in China. Recently, the United States Deputy Assistant Trade Representative Charles Freeman said at a hearing held by the US-China Economic and Security Review Commission that more and more automotive components, such as brake pads and windshields, have appeared. Counterfeit goods that may pose a threat to the consumer's personal safety.


Experts pointed out that the attention of the US government departments to the issue of counterfeiting of Chinese auto parts is a dangerous signal for Chinese auto parts exports. In general, when the United States discovered a single issue in China's trade, it got a bargaining chip. When needed, the United States will play this card. For Chinese auto parts exporters, if they can't quickly improve the quality of their products, they will most likely be threatened by trade barriers.


When the export market is still bright, auto parts companies should take precautions and respond positively. On the one hand, they should increase scientific and technological research and development, increase the scientific and technological content of products, and gradually develop products with independent intellectual property rights; on the other hand, We should consciously regulate export behavior, prevent counterfeit and shoddy products from flowing into foreign markets, safeguard the credibility of Chinese products, and avoid giving excuse to developed countries.


People in the industry are concerned that if they do not make preparations as soon as possible, Chinese auto parts companies that started soon will not be able to fight back against the trade barriers of developed countries.


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