Local component companies expect reasonable protection of policies

Beijing Gear Factory is a subsidiary company of Beijing Automotive Group Corporation and is a well-known transmission manufacturer in China. In 2002, when Beiqi and Hyundai established a joint venture with Beijing Hyundai, Beijing Gear General Factory wanted to produce transmissions for Beijing Hyundai. A joint venture is also possible. However, Hyundai insisted on establishing a wholly-owned transmission factory. Referring to the past, Zhang Wei, director of the Beijing Gear Factory, is still very sorry and sad: "Without corresponding policy support, we can only sigh."
At present, multinational filter companies such as Man Hummel, Mahler, Sogfee, Fleetguard, Donaldson, and Denso have all invested and built factories in China. The original domestic filter manufacturers, only a few companies such as Jinweiwei and Pingyuan are still working hard and have a relatively large market share. Wang Quanfu, chief engineer of Jinweiwei Filter Co., Ltd., told the author: “A large number of multinational companies have entered, with mature technologies, advanced equipment, and sufficient funds, have caused a great impact on domestic filter companies. We are now very struggling. ."
In addition, Wuxi Weifu, a domestic oil pump and nozzle manufacturer, has become a resounding company. After establishing a joint venture with Bosch to establish Bosch Automotive Diesel Systems Co., Ltd., Bosch Holdings is close to 70%, and China gradually loses its R&D autonomy. At present, in the face of the imminent implementation deadline of China III emission standards, domestic diesel engine companies can only place large orders for EFI systems for multinational companies.
Because there is no limit on the number of shares, foreign-funded enterprises often take the route of joint venture and sole proprietorship. For example, Tangshan Aisin Gear Co., Ltd. was established in 1996 by three Japanese companies, including Tangshan Gear Factory and Japan Aisin Seiki. By April 2003, it had become a Japanese-owned company.
In addition, multinational corporations have not stopped their joint venture with domestic key auto parts companies for a moment. A person in charge of a car bridge company told the author that foreign aerobridge companies often find them seeking a joint venture.
In the face of large-scale multinationals attacking cities, local auto parts companies want certain policy protection.
Wang Quanfu said: "If there is a certain limit to foreign-invested parts and components companies, the establishment of more wholly foreign-owned enterprises is very dangerous for China's domestic auto parts industry." He pointed out that the relevant national leaders have recently indicated that they must protect and support them. The key enterprise in the domestic construction machinery industry. In fact, the automotive industry should be more protective.
Li Dakai, chairman of Shaanxi Fast Automotive Transmission Group, believes that “the state should have a certain ratio limit on foreign investment in the auto parts industry. Domestic auto parts companies should not make joint ventures because once they are in a joint venture it is difficult to exist independently. He said that Fast had once had a joint venture with Eaton of the United States. When Eaton asked Fast to give up his own research and development rights, Fast did not agree. Today, the joint venture between Fast and Eaton is no longer there.
Although domestic parts and components companies all hope that the country will introduce policies to limit the number of foreign investment in auto parts and components, they are all aware that this possibility is already very small. Under the current situation, China’s efforts to open up to the outside world can only increase, and it is difficult to go back. Not long ago, Zhang Xiaoyu, vice president of the China Federation of Machinery Industry, said at a conference that in the future, the 50:50 ratio limit of China's auto joint ventures will be broken, and the shareholding ratio of foreign investment will further increase. However, in addition to limiting the equity ratio, there are other reasonable measures to protect the local auto parts industry.
Li Dakai suggested that when the relevant state departments examine and approve foreign capital for sole proprietorship, they may add some requirements. For example, a research and development department must be set up to recruit a certain number of Chinese workers, and the scale of investment should reach a certain level. He told the author that this restriction is ubiquitous in some countries abroad. For example, India does not allow foreign companies to establish wholly-owned parts and components companies; the United States has also formulated some restrictions on foreign investment. In the past, Fast had encountered all sorts of obstacles when it acquired a US parts and components company.
For some key components and backbone components companies with promising development, the state should give priority to support. Wang Quanfu said that without an autonomous parts and components system, building a self-owned brand vehicle is an empty talk. For leading enterprises in the industry, the state should increase support and increase the voice of independent brand enterprises.
For local auto parts companies, policy protection alone, independent innovation, and efforts to become bigger and stronger are the best ways to deal with the impact of foreign investment. Li Dakai believes that there is no contradiction in insisting that independent innovation and foreign technical cooperation, local parts and components companies should use all means to improve the technical level and avoid simple plagiarism. At the same time do large-scale, do not fight price war. In addition, we should make full use of factors such as time and place, strengthen services, and make up for temporary technical shortcomings.

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