Yesterday, when I was surfing the Internet, I saw a news of "China's defeat of final decision on auto parts trade disputes." Sohu Automobile also launched for the first time the "China, Europe, and the United States to Add Imported Auto Parts Wars" to reflect the latest developments.

The core content of the news is that the Appellate Body of the World Trade Organization in Geneva on the 15th to the United States, the European Union and Canada v. China auto parts import management measures made a final ruling, the ruling upheld the dispute that the agency believes that China's practices violate WTO rules In conclusion, China lost the lawsuit in this trade dispute.

It is worth noting that Yao Jian, the spokesperson of the Ministry of Commerce, responded to the statement in the first time, stating that the Chinese side has noted that the Appellate Body has supported China’s appeal request in terms of import tariffs on CKD/SKD Correcting the previous erroneous ruling of the panel of experts, the Chinese side welcomes this, but at the same time also regrets that the Appellate Body has maintained the rulings of other parts of the panel.

After careful reading, the author found that this losing case was not entirely unexpected, because from the point of view of the auto parts WTO dispute itself, the original Chinese chances of a comeback were not great.

Back to the source, in early 2005, after China abolished the management of imported automobile quotas, a small number of enterprises passed customs clearance, decentralized imports, etc., and they imported customs parts and components with a tax rate of only 10%, and they assembled cars for sale in the country to escape 25%. The vehicle tariff. The relevant departments have therefore issued the “Measures for the Administration of the Import of Auto Parts and Components that Constitute the Characteristics of the Vehicle” to regulate the order of import of auto parts and to curb unfair competition.

The author believes that such "Management Measures" is also very difficult to stop the symptoms and cure the problem. After all, the current tariff measures cannot suppress the import of foreign auto parts. At best, it only serves to prevent tax evasion in disguise. The multinational corporations' impact and penetration of parts and components It is almost impossible to prevent.

However, it needs to be acknowledged that before and after the implementation of the "Administrative Measures," China's automobile trade has indeed undergone great changes. In 2004, there was a huge deficit in China's auto product trade, with a surplus of USD 14.9 billion in 2007. Multinationals such as GM and Ford have purchased a large number of auto parts from China for use in their global automobile assembly plants.

At present, the world's top 500 companies Delphi, Honeywell, Visteon and other auto parts giants have invested in factories in China, and use China's low-cost advantage to export abroad. At the same time, it has mastered the key technology of key components as the main advantage.

From the perspective of Chinese auto parts companies, the biggest challenge is not the tariff policy, but how to deal with the competition of foreign companies at the doorstep. After all, China's auto parts industry is generally thin, small-scale, low-tech, and technologically backward. As a result, its competitiveness is quite limited.

Judging from the policy level, there is currently a lack of targeted guidelines for continuously nurturing and improving the overall innovation capability and sustainable development capability of domestic auto parts companies.

Looking further, domestic domestic auto parts enterprises have no policy support, and China can hardly say that it already has control over the development of its auto industry.

The early technology-for-market approach has led to the dominance of China's auto market. However, under the current situation of lack of ownership of the core components, it has reached the eleventh five-year plan to achieve the government’s “more than 50% market share for independent brands”. The goal is easier said than done.

What is really worrying in Europe and the United States is that the rapid rise of Chinese auto parts and components' competitiveness in global trade will make their interests in the auto industry engulfed by China.

To see this clearly, the Chinese government supports the development of domestic self-owned branded vehicle companies. In fact, the first step should be to support the healthy development of local auto parts enterprises.

Do not you see, when the three major North American bankruptcy crisis, the Japanese car companies think of the bottom bargaining is not the three major brands, but want to wait for the opportunity to purchase GM, Ford, Chrysler and other core parts supply system.

From this perspective, it may not be a bad thing for China to lose the case in the dispute over trade disputes in auto parts, and it is hoped that this will cause the decision-makers to pay enough attention and respond to the remedy.

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