According to the latest data from the Ministry of Commerce, foreign capital controls the majority of China’s auto parts market share, and domestic sales of parts and components only account for 20% to 25% of the total industry. With most overseas auto giants establishing joint ventures in auto parts in China and extending to the upstream of the industry chain, joint ventures will become the dominant force in China's auto parts market. The reason why the joint venture has become the main force of the future market is because China’s spare parts market has great potential and its production cost advantage is destined for foreign giants to seize the Chinese market, cultivate their own joint venture parts and components companies in the Chinese market, and lay out components industry in advance; It is that local companies are still in the early stages of development in terms of technology and capital, and there is still a large gap compared with foreign advanced enterprises, which requires the injection of foreign technology and capital. At present, 90% of the market share and manufacturing capacity of domestic-funded parts and components enterprises are concentrated in low-end products, so joint ventures have become the primary way for local companies to seek development. It is undeniable that the joint venture has, to a certain extent, promoted the development of China's spare parts industry, brought about certain innovations to its own enterprises, and turned it into corporate profits. At the same time, Sino-foreign joint ventures can certainly bring about many job opportunities. Before the parts market in our country is truly mature, the parts and components companies must adopt the model of coexistence of foreign capital, joint ventures, and local companies for a long period of time. However, how local companies can break the monopoly of foreign capital joint ventures will be an important issue facing the auto parts industry in the future. It should be noted that the pressure brought by Sino-foreign joint ventures to Chinese auto parts companies has become increasingly prominent. First of all, it is impossible for foreign capital to bring the most advanced core technologies to China, and bring back a few upcoming technologies. For many years, the Chinese have been unable to master the core technology and have been lagging behind in terms of technology. Secondly, after the Sino-foreign joint ventures are put into production, the products produced have higher technological content than the output of Chinese companies. However, the production costs are similar, and the unfavorable aspects of the market will certainly favor Chinese companies. The entry of foreign companies will inevitably swallow up most of the market, leaving only Chinese parts and components processed without technical content. Over time, Chinese companies are bound to face the fate of closure. Once again, as the joint venture continues to deepen, the balance of capabilities of the Chinese and foreign parties is constantly changing. If China still only stays in the capacity of providing local support and has no achievements in technological development capability and digestion and absorption capacity, then the bilateral cooperation scale will be tilted outwards, and there will be a trend of foreign-owned or controlling companies. With the large-scale development of the market, the merger and reorganization of enterprises will be unavoidable. The reshuffling of the parts and components market is also a general trend. Therefore, how can Chinese independent enterprises break through in the competition? Not long ago, the National Development and Reform Commission and the Ministry of Commerce issued the “Foreign Investment Industry Guidance Catalogue (Revised Draft for Solicitation of Comments)†to revise the foreign investment policy. It is planned to control the proportion of new investment in new energy automobile key components and components of foreign investment in China. Within 50%. Many people in the industry pointed out that: To auto parts industry is to have some control, especially the control of the development of key parts, if you completely let go, give up the dominant position, simply let the market go out, it will not help China zero The sustainable development of the component industry. However, on the other hand, Chinese companies need to upgrade their independent research and development capabilities, form core competitiveness, seek their own position in fierce market competition, and strive to gain market share with the role of non-original suppliers, rather than waiting for, relying on, The country's policy support is the key to the development of "self-improvement" in China's auto parts enterprises. Xpe Tube Welding Machine,Xpe Inslulation Pipe Making Machine,Pe Insulation Pipe Welding Machine,Xpe Foam Pipe Bonding Machine Laizhou Jinlida Machinery Co.,Ltd , https://www.jinlidafoammachine.com