Visionary foreign automakers should put Chinese-like models in China. Do not complain about the Chinese market without coming in with new technologies and products

Former Assistant Minister of Foreign Trade and Economic Cooperation, Xu Bingjin, represented China's national industrial system in China’s negotiations on “re-entry” and “WTO accession.” On the eve of China’s accession to the WTO two weeks ago, when he talked to the Financial Times about China’s commitment to fulfilling the opening of the automotive sector and the changes to China’s auto industry after China’s accession to the WTO, his attitude was both satisfactory and worrying.

Satisfied is that China is conscientiously fulfilling its relevant opening promises, and China’s accession to the WTO has not brought a big impact on the Chinese auto industry; it is worried about a new round of investment in the auto industry, which may trigger a crisis of overcapacity and the resulting investment risks. , and the non-market-oriented management methods of certain sectors after China's accession to the WTO.

Foreign companies have two complaints

Xu Bingjin said that he understands that there are two dissatisfactions in the international automotive industry in China. One is opacity and the other is excess.

The so-called opaque means that foreign auto makers want to know that China's auto imports are increasing by 15% each year. Which cars are imported? Who are you giving? Is it really increasing 15%? From the date of the accession to the WTO, the increase in imports of 6 billion U.S. dollars each year, and foreigners demanding disclosure, must be transparent.

The so-called surplus is that foreign auto makers complain that there are too many Chinese automakers, and they fear that all cars will result in slow sales.

Xu Bingjin believes that it now appears that after China's accession to the WTO, the impact on the auto market is not too great. What complains is these two things.

For transparency, it should not be a problem. In fact, China has already announced its commitments. As for the extent to which it promises to perform, it depends on the market and the impact of the product itself. As for the surplus, it is not at all now. The current situation in the auto market is better, no matter what The models produced by enterprises can be sold.

Xu Bingjin said that foreign automakers with a vision should put Chinese-like models in China. We cannot complain about the Chinese market without taking new technologies and products. China's market economy is still in a stage of growth and development. It is still not perfect. Foreign investors must first understand Chinese culture and understand the consumer psychology of the Chinese market. They cannot complain from their own point of view that the investment environment has become bad again.

From the perspective of the structure of Chinese automotive products, there are models of medium and low grades. Whoever knows the Chinese auto market is good, whoever leads the way; whoever patronizes immediate interests and does not have long-term plans, even if they benefit from it for the time being, it will be inevitable that they will be eliminated in the future. They can only blame themselves.

Investment overheating should be solved by market

Xu Bingjin believes that in the face of the current paradox of the automobile project, it can only be solved by market methods.

Government departments should formulate some guiding regulations to give businesses a clear direction and they should not do anything else. We must remind them that they have to suffer more losses. This is the role of the government. It cannot emphasize the use of approvals to restrict them. In particular, it is not necessary to engage in the approval of parts and components companies and joint ventures.

He personally thinks that not all cars can do it. It's probably a piece of patchwork. It may be okay to use this market opportunity, but if there is not a lot of investment is untenable, especially if there is no solid material technology foundation, Not at all.

After China's accession to the WTO, Chinese cars did not emphasize localization, brought in foreign advanced things, and turned themselves into their own. In this regard, they worked hard to get together to make cars, and they made thousands of vehicles and thousands of vehicles a year. People can't do it, but it can never grow. Quality can't be guaranteed, security can't be guaranteed, and reliability can't be guaranteed. This kind of car has a certain influence in the market and it sells very fast because it is cheap and suitable for Chinese tastes. However, whether it is safe and reliable and whether it meets the standards of auto companies is still hard to say.

After talking about the management problems after the abolition of non-tariff measures, Xu Bingjin thinks that there are many successful ways to learn from foreign countries. For example, South Korea uses high consumption tax to resist automobile imports. If private cars are imported cars instead of Korean cars, the consumption tax should be high. Several times, in addition to proof of annual income and proof of tax payment. Who wants to show his own family? Imported cars naturally enter less.

Xu Bingjin said that in the past, the registration system invented by the State Council's Mechanical and Electrical Industry Office was also an effective method. When the WTO negotiated, foreign negotiators asked that the Chinese government agreed to cancel the quota, but we used the registration system. We think it is a disguised form. Non-tariff measures: I told them that the registration system is an internationally accepted method that everyone can use. Why can't China? The other side asks why China wants to register? I said that registration is for statistics. The other side said that there are customs statistics. Why? Do you still have statistics? I said that the customs is afterwards. I have statistics in advance. The other party has nothing to say."

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