China's parts industry has the advantage of globalization

On the eve of the fifth anniversary of the accession to the WTO, the topic of how the auto parts industry responds to the globalization process has once again been raised. At the International Investment and Trade Purchasing Forum of the 2006 China Automotive Industry International Development Forum on September 17, representatives from domestic parts companies and business officials from some Chinese embassies in China expressed their views.
Globalization brings development opportunities Lan Qingsong, executive director of Shanghai General Purchasing Components, said that with the acceleration of globalization, China's auto parts industry will benefit. He said that globalization can promote the full participation of component companies in global sourcing, improve the ability of parts and components to operate in multiple locations around the world, and the development capabilities and technical level of component companies will also be improved.
Lan Qingsong said that globalization can promote the resource integration of China's parts and components enterprises and global excellent parts and components enterprises, enhance the core competitiveness of China's parts and components enterprises, and enable excellent parts and components enterprises to participate in domestic and international market competition and accelerate development. . In addition, globalization can optimize the supply chain system and shorten the supply radius.
“China Procurement” Becomes a Factor of Multinational Corporation's Competitive Strategy With the continuous growth of China's auto market, the growth rate of China's auto parts industry has been higher than that of domestic OEMs. Component manufacturers began to look to overseas markets.
Nanyang, general manager of Shanghai International Auto Parts Purchasing Center, said that in addition to serving domestic OEM support and domestic after-sales market demand, Chinese auto parts manufacturers are accelerating the pace of exporting to the global market and starting to adapt to the international after-sales market. Global OEM supply chain. According to customs statistics, in 2005 China's parts and components exports exceeded 10 billion US dollars, and more than 1,000 parts and components export enterprises.
At the same time, Nanyang said that with the restructuring of the global automotive industry and market changes, multinational manufacturers and parts buyers have adjusted and reorganized their traditional parts suppliers to enhance cost competitiveness. China's auto parts resources are included in its new global procurement resource pool and supply chain.
Nanyang pointed out that "China procurement" has become a hot spot in the competition strategy of multinational auto companies, and also a manifestation of the global automobile industry's major trend of change. According to statistics, in 2004, the export of China's parts and components enterprises reached 5.632 billion US dollars; it is estimated that by 2010 China's auto parts exports will exceed 30 billion US dollars.
The advantages of domestic parts and components enterprises in the multinational supply chain are obvious. With the growth of China's auto market and the continuous improvement of localization rate, China's auto parts resources are increasingly rich, and the cost and price advantages of many types of parts and components are obvious, with considerable international competition. force.
Nanyang said that on the basis of resource advantages, in recent years, Chinese auto parts manufacturers have continuously improved in terms of quality system, supply chain standards and international product certification. Many local parts manufacturers have reached the international buyers' evaluation requirements through their efforts. , enter the multinational supply chain. The rapid improvement of the overall quality of China's auto parts resources has enabled local companies to rise rapidly and their strengths are fully approaching foreign or joint ventures, providing buyers with more competitive options for realizing China's procurement.
According to Nanyang, as local suppliers in China actively pay attention to the development of multinational auto companies, suppliers in other regions of the world are more willing to invest in technology according to procurement requirements, so they can further cooperate with buyers and become a new international strategy. partner. In this way, Chinese auto parts companies can more smoothly cross the country, export international aftermarket and join the global supply chain. In recent years, the export volume and export varieties of auto parts have continued to increase, accumulating international business experience for export OEMs and forming a virtuous circle.
At the same time, domestic foreign-funded component manufacturers have also adjusted their global strategies and gradually shifted their focus on manufacturing capabilities and technological development in the Asia-Pacific region to China. In addition to the further “localization” of its own operations and the deep localization of its products, it has further promoted the development of upstream second- and third-level local parts and suppliers, and improved the competitiveness of foreign companies in the international market.
Many countries have shaken the olive branch. China's auto parts industry has grown steadily, attracting more and more countries to trade cooperation.
Li Xinyu, an official of the Australian Embassy Investment Office, said that China is currently Australia's 20th largest investment destination, with a total investment of A$2.043 billion as of December 2005. At the same time, Australia is China's 18th largest overseas investment destination, with a total investment of 2.275 billion Australian dollars at the end of 2005. Li Xinyu said that China is currently Australia's second largest trading partner. The total trade volume in 2005 was A$33 billion. It is hoped that China will make greater progress in the cooperation of automobile industry trade in the future.

Li Xinyu said that Australia has a complete wholesale and retail network in the parts industry, with annual import parts reaching 2.7 billion Australian dollars, an annual increase of 3.5%. The annual sales of Australian parts and components are approximately A$8 billion (2004), with the main importers of parts and components being Japan, the North American Free Trade Area, Germany, Thailand and South Korea. Li Xinyu said that Australia's unique advantages can help Chinese component companies to develop better.
As the world's 11th largest automobile manufacturer and the second largest trading partner of the United States, Mexico has a complete and mature supply chain system. Carlos Santos, Commercial Counselor of the Mexican Embassy in China, said that Mexico, which is located in the central part of the Americas, has established sales agreements with the United States and Canada in North America, Brazil, Argentina, Chile and other countries in the United States and the European Union, and constitutes a relatively developed sales network.
Carlos Santos said that the export of parts and components is the advantage of Mexico. It is strong in the production and processing of steering wheels, steering rods, seat belts, seat backs and other components, and the production capacity of these parts is increasing. Currently, it is actively seeking partners. Mexico has the advantage of low labor costs, but the education level and overall quality of the workers are not low, so the quality of the products can be effectively guaranteed. At present, the Mexican government has introduced a series of preferential policies and incentives for attracting foreign investment, including the appropriate relaxation of tariff policies for China and the government's allocation of irregular Chinese companies to visit Mexico.

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