China's auto parts industry suffers from trade friction

From the perspective of the development trend of China's parts and components industry, it is arguable that the “double reverse” investigations faced by some countries are another step that must be taken in the process of its growth, and it is its growing troubles. If we want to fundamentally avoid this "crimes", we must achieve "from big to strong" as soon as possible.

In the past 10 years, China's spare parts have been cultivated and developed, and they have reached a certain scale. They have certain technical conditions and are in the development stage of “from small to large”. The development mode is extensive. The characteristics of the products at this stage are inexpensive and competitive, and it is easy to cause impact on the original industry structure.

This model will inevitably become the opponent's rhetoric in the now-developed economies of Europe and the United States. If we want to get rid of this kind of trade friction in the future, China's spare parts industry will need to continue to raise its technological level, strengthen brand awareness, and raise the overall level of the industry. At the same time, it will strengthen the understanding of relevant laws and regulations in exporting countries and increase the flexibility of foreign trade measures.

The United States has struck China's auto parts industry and claimed that it will conduct anti-dumping and anti-subsidy investigations on auto parts exported to the United States, including related products such as engines, automotive electronic equipment and tires. This also made the Ministry of Commerce had to issue an emergency risk warning to remind auto parts companies to take preventive measures, so that the trade between China and the United States once again ushered in an "ecstasy."

According to U.S. congressmen, the United States now has 50 federal states. A total of 1.6 million jobs are directly or indirectly derived from auto parts and tire manufacturing. Since 2000, 400,000 jobs have been lost.

However, is the fact that the U.S. government is saying the same? In fact, China's spare parts did not lead to the U.S. government’s trade deficit. A careful analysis will reveal that the fundamental reason for the U.S. government's clamor is that the Obama administration used the Sino-U.S. trade talks during the election year as a canvassing tool. Relevant statistics show that in the export of parts and components industry in China, the export volume of joint-venture and wholly-owned parts and components accounts for 30% of the total exports of parts and components, and the export value accounts for 70% of the total export value of parts and components; the export volume of self-owned brand enterprises accounts for the total export volume. 70% of the volume, but exports account for 30% of the total exports of parts and components. The vast majority are low-end and medium-end products. In addition, parts and components of joint ventures and wholly-owned enterprises are mainly exported to the OEM market, and self-owned brand enterprises are mainly exported to the aftermarket.