Multinational companies now not only have mastered car brands and development in China, but also control their parts supply chain and car sales rights in their own hands - China's largest auto industry is facing enormous challenges. At the just-concluded "Global Brain Bank Forum," Jia Xinguang, chief analyst of China Automotive Industry Consulting Development Co., said.


The strategy of multinational auto giants to enter China has been continuously adjusted in recent years. When they first entered China, they focused on manufacturing, because the global automotive industry's average profit margin was 3 to 4%, while in China it increased by 10 times. In recent years, the price cuts of cars have caused huge profits. However, multinational corporations still rely on technology transfer fees, trademark fees, and royalties, and are still making money every day.


China's auto industry has developed for many years, but most of the hot-selling brands in the market are "acquisitionism." Jia Xinguang said "deliberately": "The joint venture to build cars, the Chinese almost lost the right to speak. Now that some domestic cars can't find Chinese characters, most can find a Chinese number near the exhaust pipe."


The intention of a multinational company is to monopolize the entire upstream and downstream industries of the automobile industry. Some multinational companies even monopolize sales channels and control the end of the industry chain.


Many multinational companies see the Chinese market as their main source of profit. According to analysis, in 2003 the world’s auto production grew by less than 3% to approximately 1.5 million, of which 1.2 million grew from China. For transnational corporations, if they do not achieve advantages in the Chinese market, they will lose their global advantage. For example, among the six major global automobile groups, Japan's "Toyota" has surpassed Ford in second place last year and is approaching "General Motors." "General Motors" and "Toyota" who competed for the first place in China could be the world's number one.


Yang Hexiang, director of the Industrial Development Research Institute of the National Development and Reform Commission, believes that China’s huge auto market is supposed to be the only fertile ground for training the Chinese auto industry. However, the global giants have taken over the land and made the Chinese auto industry start from the very beginning. This is very different from the fact that the United States had almost no foreign competitors when it started to develop the automobile industry in the 1920s.


In response, Yang Hexiang proposed "to deal with the relationship between openness and protection." He pointed out that from the perspective of the development of foreign auto industry, the protection of the auto industry is always there. After Japan's accession to the WTO, tariffs have been reduced, but non-tariff barriers have increased, including restrictions on foreign exchange import quotas and the establishment of foreign product dealers. For example, if there are too many dealers in a certain area and excessive competition, it is not allowed to set up dealers. It is worth mentioning that such restrictions do not come from the government but are protected in the name of the association. In addition, the establishment of import ports is also very particular about the fact that Japan's ports for importing foreign cars are located far from the central consumer market, such as Hokkaido.


Yang Hexiang believes that in the cooperation with foreign brands, the relationship between Chinese capital and foreign capital should be properly handled to find a balance point: If the interests of foreign capital are not protected, China may lose the platform for cooperation with foreign countries, but if Chinese capital Without the protection of interests, China’s industrial capital will lose its own development space.


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