New "measures" will be implemented industry dilemmaly

From the WTO accusations, while making the "measures" can Dunsheng variables implemented as scheduled. Once the new regulations put into effect, parts and components to China will bring about the impact of enterprises, but also a cause for concern

From the "characteristics of a vehicle auto parts management approach" (hereinafter referred to as "the way") of the implementation period July 1 there are still two weeks, China's domestic parts and components enterprises have begun to feel complicated.

According to the "measures", the import of used vehicle parts and components valued at more than 60% of the value of motor vehicles, must charge the same tariffs and the vehicle (which is 25 per cent). The import tariffs on parts and components only 10 percent.

With the imminent implementation of new regulations relative to the incident, on February 13 this year, the World Trade Organization (WTO) ruled China of violating the provisional trade rules, to impose high import tariffs on auto parts, contrary to join China in 2001 WTO commitments. The organization asked the Chinese auto parts imports to give more concessions.

From the WTO's accusations, makes this the "measures" can Dunsheng variables implemented as scheduled. Once the new regulations put into effect, parts and components to China will bring about the impact of enterprises, but also a cause for concern.

Chuan policy more

With China's formal accession to the WTO, the cancellation of some restrictions on auto imports terms of foreign-funded enterprises started the industry norms of "Ca Bianqiu" Huazhengweiling the way through to avoid taxation, access to benefits. "Characteristics of a vehicle auto parts management approach" came into being.

In 2005, the "measures", the prices of imported parts and components to meet the sum of the total price of car models to 60% and above, the collection vehicle with the same 25 percent tariff. This vehicle features the standard approved since July 1, 2006 takes effect.

However, in March 2006, a lawsuit disrupted the "methods" implementation plan. EU and U.S. to the WTO action at the same time the Chinese Government formulated the "Measures" irregularities, and then Canada to join. The prosecution believes that China over the vehicle more than 60 percent of the import car parts by the practice of tax-related violations of trade rules.

"Measures" have Chuan fate of this Open.

Early July 2006, the General Administration of Customs and the Ministry of Commerce announced that the originally scheduled for July 1, 2006 since the implementation of the "measures" postponed to July 1, 2008 implementation. As for the specific reasons for delay, the notice did not mention.

At the same time, China and Europe and between the U.S. auto parts imports into the issue of the 60-day consultation period. But the parties failed to reach agreement on the final in September of that year launched the WTO dispute settlement procedures, the decision to enter the Group stage.

-- February 13 this year, results for the preliminary ruling, the Chinese lost.

The result of that triggered the trade. Co-passenger vehicles will be of the view that the Secretary-General Rao preliminary ruling unfair. However, he also pointed out that China can still appeal, the survey, carried out for explanation, and so, this will China's independent brand for the growth of valuable time.

In the preliminary ruling on the outcome of the dispute at the same time, the "measures" Can this year as scheduled July 1 implementation, industry concerns. "China and the European Union, United States, Canada and parts of disputes in the short term there will be no results, the" measures "At least until 2010 before a possible withdrawal." Rao said of.

The disparity between the forces

Rao was that the "methods" introduced, reflects China's relevant departments prevent China from become the world's assembly plants, the Chinese auto industry to accelerate the growth of care and thought.

China has become the world's second largest auto consumer countries, but in R & D and manufacture of automotive components, the Chinese force is clearly inferior. The historical reasons can not be ignored.

"For a long time, China's auto industry policy compared to vehicle production enterprises, to the neglect of its supporting the development of automobile spare parts market. Heavy vehicle light Accessories, has led to parts in research and development in China lags behind other countries." Veteran automotive Analyst Jia Xinguang of the "Financial Times" said.

In the initial stage of development the automotive industry, due to financial constraints, only limited capital investment projects focused on the vehicle, "July 5" period, the investment started to parts, "August 5," "September 5" as a priority, However, the proportion of investment has always been low.

China congenitally deficient parts and components industry in the formation of strong contrast, the foreign parts enterprises in the Chinese market, "Hushidandan."

In recent years, foreign-owned,-controlled parts enterprises annually. Transnational auto parts giants such as Bosch of Germany, Delphi, Japan's Denso, Aisin Seiki Co., Fujitsu, send e-al, France Valeo, one after another to joint ventures, wholly-owned investment in China and set up factories in the way. Today, the world's top 100 auto parts enterprises in 70 percent have set up factories in China, the Chinese foreign investment in auto parts enterprises over 1200.

Foreign-invested enterprises in China, the rapid occupation of parts of the main areas of market share and become directly to the Zhuji Chang supporting a provider. According to incomplete statistics, as at present, foreign parts and components market in China has accounted for more than 60 percent market share.

What is the way out

Foreign investment in all parts giant beach circumstances, high-tech automotive components of the core technology for the most part held by the International Automobile giants, independent research and development ability of domestic companies is still short of its own development board.

England Dili Shanghai Automotive Parts Co., Ltd., one week named the manager believes that foreign capital enterprises in China parts of the landing parts market, to bring advanced technology and introducing competition mechanism. "Competition will be improved, China will allow the parts to cutting-edge. Elevation foreign auto parts the threshold of entering the China market, will be restricted to some extent local automotive components and technological development." Above tell Zhou Jingli "Financial Times."

"Who can not say who robbed of their jobs, who earn more money. To promote the development of market economy, to promote a technology update on the role, is the focus of." Then he added.
In auto analyst Jia Xinguang, the increase of independent research and development capabilities and strengthen product innovation, China's domestic parts and components is the way out of the business.

Said Jia Xinguang, although in recent years, parts and components industry in China has noticeably accelerated the pace of development, but the current situation, the high-tech automotive components of the core technology for the most part by the foreign master, we lack of independent research and development capabilities. Most parts of China's major products or plants concentrated in low technology content, low labor cost areas. "Chinese auto parts manufacturers lack the brand that the brand and R & D and technology are the core does not have its own R & D and technological innovation, what means are there to talk development» "