Thirty years of reform and opening up of the main policy inventory of auto parts industry

During the 30 years of reform and opening up, China’s auto industry has grown by leaps and bounds, achieving remarkable achievements. The scale and overall strength of China’s auto parts industry have also made considerable progress. In the past 30 years, the repeated changes in China's auto parts industry policy have described the development trajectory and blueprint for the auto parts industry.

Those policies and regulations that have an impact on the planning and layout, development, production and management, marketing services, and user consumption of auto parts industries have promoted the transformation of China's auto parts industry from small to large.

1985 "Suggestions of the Seventh Five-Year Plan for the National Economic and Social Development of the Central Committee of the Chinese Communist Party"

Main contents: In September 1985, the "Suggestions of the Seventh Five-Year Plan for the National Economic and Social Development of the Central Committee of the Chinese Communist Party" proposed for the first time that according to the requirements for accelerating the construction of transportation, the automobile manufacturing industry should be regarded as an important pillar industry. Large-scale development; For the assembly and production of imported parts, it is necessary to reduce the import of parts and gradually realize localization.

The Seventh Five-Year Plan for the National Economic and Social Development of the People's Republic of China (1986-1990), which was promulgated in April 1986, mentioned the simultaneous reconstruction and expansion of a number of more advanced professional auto parts production enterprises. In August 1987, the State Council’s Beidaihe Conference made it clear that it will build three production bases for FAW, Second Automobile and Shanghai. It is further recognized that the production of cars should be based on the principles of “high starting point, large quantities, and specialization”, focusing on spare parts production and related industries, and accelerating the increase in the localization rate.

Comments: The state attaches great importance to the production of auto parts while focusing on the development of the car industry. It is hoped that the introduction of technology and the ultimate realization of localization will open up the situation for the development of China's spare parts industry.

1994 Automobile Industry Industrial Policy

Main content: For the elaboration of auto parts, the “Auto Industry Industrial Policy” promulgated and implemented in 1994 will focus on the development of car parts. First, in the product planning, it is pointed out that the key parts and components of sedan cars account for more than 25% of the domestic market share of similar products, or products that are urgently needed to be developed within the domestic market. The state supports its goal of developing to the economic scale. Second, the proportion of Chinese-owned foreign-funded joint ventures and cooperative enterprises that emphasize the use of foreign capital in their foreign investment shall not be less than 50%. Third, the localization policy was specifically proposed to specify that joint ventures should give equal priority to domestically produced parts when selecting components. After the introduction of technology, auto industry enterprises must carry out the work of localization of products and regard the progress of localization as one of the conditions for supporting the development of the second model of the joint venture. Automobile industry enterprises must not import parts and assemblies by half-parts (SKD) and all-parts (CKD). According to the localization rate of auto industry products, the country has established a preferential tax rate for import duties.

Comments: This is China's first industrial policy for the automobile industry. In the formulation of the relevant parts and components, the phased strategic tasks, localization, have been clearly specified and the localization rate has been specified. In the past ten years, the level of localization of domestic cars and the overall level of spare parts have been greatly improved. Without the localization of parts and components of the year, there will be no basis for China's auto parts industry today.

1996 "Circular on Prohibiting Unlawful Matching (Group) of Vehicles and Motorcycles"

Main contents: In August 1996, seven ministries and commissions including the State Administration of Industry and Commerce, the Ministry of Public Security, the General Administration of Customs, the State Development Planning Commission, the Ministry of Machinery, the Ministry of Foreign Trade and Economic Cooperation, and the National Electromechanical Products Import and Export Office jointly issued the "On the prohibition of illegal spelling (group) installation. Notice of cars and motorcycles." The notice pointed out that, without the approval of the relevant state departments, the use of imported automobile body (including the cab) to produce cars, is an illegal fight (group) loading vehicle behavior. As for the behavior of illegally assembled vehicles, the administrative departments for industry and commerce, public security organs, and customs shall confiscate sales proceeds, unsold vehicles, and imported goods according to their respective duties.

Comments: China's illegal assembly of the auto market once flooded, fake and inferior parts and components, paralyzed the normal market order, hindered the healthy development of China's auto industry. Severely cracking down on unlawful fights (groups) of loading automotive activities is an important measure for implementing the "Auto Industry Industrial Policy" and guaranteeing the normal order of production and operation of entire vehicles and components.

China's Accession to WTO in 2001

The main content: In 2001, China's accession to the WTO, in accordance with the provisions of the WTO on investment and technology transfer, began this year with the implementation of TRIMS. The agreement stipulates that no localized ratio shall be prescribed; no restriction on the assembly of imported parts may be imposed; the import may not be restricted on the basis of foreign exchange balance; and the number of exports may not be specified.

In order to adapt to the WTO rules and the development of the market economy, the “Guidance Catalogue for Foreign Investment Industries” issued by China in 2002 has been adjusted accordingly. The entire vehicle project insists that the proportion of the joint venture’s Chinese share shall not be less than 50%. open.

Comments: After joining the WTO, the auto parts industry has taken substantive measures in trade liberalization and investment liberalization. China's spare parts industry does not impose shareholding restrictions in the same way as the entire vehicle sector. The equity ratio has been fully liberalized and localization regulations have been removed. From July 1, 2006, the average tariff on auto parts dropped to 10%. The sole ownership of components or joint ventures is increasingly becoming the main form of foreign investment in the automotive industry in China. Domestic component companies are facing more severe competition challenges.

[next] 2004 Automobile Industry Development Policy

Main content: In June 2004, China promulgated the “Auto Industry Development Policy”. In this policy, there is a special chapter "Parts and related industries", which proposes to encourage and cultivate a group of parts and components companies with comparative advantages, realize large-scale production and enter the international auto parts procurement system, and actively participate in international competition; Auto parts companies should adapt to the development trend of international industries and actively participate in the product development work of the main engine plant; they must gradually develop system development capabilities in the key auto parts field; and form advanced product development and manufacturing capabilities in the general auto parts field to meet domestic To meet the needs of foreign markets, strive to enter the international auto parts procurement system; develop special development plans for parts and components, provide guidance and support for auto parts products, guide social capital to auto parts production, and promote the development of parts companies with comparative advantages. Professional, mass production and modular supply capabilities.

Comment: This industrial policy is based on the fact that China has joined the WTO, canceled the original regulations on localization, and focused on the development of China's auto parts industry into a globalized division of labor system, emphasizing that China's auto parts industry should adapt Globalization trends. In addition, the country began to encourage and vigorously develop private parts and components companies. According to the development experience of the international spare parts industry, private enterprises will become the main force of the parts and components industry.

2006 "Automobile Product Recycling Technology Policy"

Main contents: In February 2006, the National Development and Reform Commission, the Ministry of Science and Technology, and the State Environmental Protection Administration jointly formulated the “Recycling and Utilization Technology Policy for Automotive Products”, which was implemented since 2010. The policy points out that auto parts supporting companies need to provide auto manufacturing companies with information on the material composition, structural design or dismantling guidelines for their supply parts, the content and nature of harmful substances, waste disposal methods, etc., in order to meet the needs of vehicle manufacturers. The recyclability of its products; automotive manufacturers must cooperate closely with auto parts production and remanufacturing, scrapped auto recycling and material recycling companies, share information, track international advanced technology, work together to improve the reutilization of auto products. Rate and recycling rate; For scrapped auto parts and repaired and replaced old parts, encourage enterprises with technology, equipment, and testing conditions to remanufacture, use as repair spare parts for auto repair, and prohibit disassembly of parts from imported and used cars. Direct or remanufactured for automotive assembly production or repair.

Comments: This is a guiding document for promoting the establishment of a scrap recycling system for automotive products in China. The purpose is to guide automotive production and sales and related companies to start, develop and promote automotive product design, manufacturing, scrapping, recycling, recycling and other work. This policy is conducive to promoting auto parts enterprises to adhere to energy-saving emission reduction, improve resource utilization, implement the scientific concept of development, and achieve sustainable socio-economic development.

"China's auto parts "Eleventh Five-Year Special Development Plan" in 2006

Main Contents: In 2006, the "Eleventh Five-Year Plan for Special Development of China's Auto Parts" (appraisal draft) was completed. The plan confirmed the overall objectives, technological innovation goals, and product export goals of China's parts and components industry during the “Eleventh Five-Year Plan” period. It is proposed that the company will develop its own brand for the parts industry and enhance the independent R&D and innovation capabilities of domestic auto parts companies. At the same time, it also proposed the concept of promoting the reorganization of parts and components companies and adjusting the industrial structure, and strived to form one or more companies with a scale of more than US$10 billion in the “Eleventh Five-Year Plan” period.

Comments: It can be seen from this plan that the state will cultivate and develop independent brands through various channels to improve the technological innovation capabilities of Chinese enterprises and expand the export scale of China's auto parts products. Car accessories change. In addition, some key development products will be set. These products will create new opportunities for the development of domestic parts and components manufacturers.

National Development and Reform Commission's Notice on Structural Adjustment of Automobile Industry in 2006

Main contents: In December 2006, the National Development and Reform Commission issued the "National Development and Reform Commission's Circular on the Opinions on the Structural Adjustment of the Automobile Industry." It is clearly stated that it is necessary to support the accelerated development of the parts and components industry, to break the blockade between regions that are not conducive to the matching of auto parts or between enterprise groups, and to gradually establish an open and competitive component system supporting parts at different levels of technology. The state supports the development of auto parts industry clusters in regions with favorable conditions; encourages auto manufacturers and parts companies to jointly develop complete vehicle products; guides the components and rank-and-file companies to scale up and up, conducts cross-regional mergers, alliances, reorganizations, and forms large-scale zeros The component enterprise group faces two markets at home and abroad; local governments and relevant departments must formulate effective and effective measures to support domestic backbone component enterprises to improve their product R&D capabilities.

Comments: The failure to synchronize the development of spare parts and vehicles is a reflection of the irrational structure of the auto industry. The automobile industry has opened up to the outside world and has established joint ventures and cooperation. The manufacturing process and quality of finished vehicle products have approached the international level, but parts production has lagged behind the development of the vehicle. The overall supporting capacity of domestic parts and components companies is not strong, the level of specialized production is low, and the capacity for independent development and system integration is weak, which cannot keep up with the pace of vehicle development. This notice has an important role to play in promoting auto parts companies to become bigger and stronger, and the relationship between the zero and the whole.

2008 "Administrative Measures on Remanufacturing of Auto Parts"

Main contents: In March 2008, the National Development and Reform Commission formally issued the "Administrative Measures on the Remanufacturing of Auto Parts Pilots". The first batch of 14 auto parts remanufactured pilot companies were identified. At the same time, the range of auto parts products that will carry out remanufacturing pilots is tentatively designated as five types of products for engines, transmissions, generators, starters, and steering gears. The "Procedure" stipulates that the remanufacturing enterprise shall not be permitted to dismantle the enterprise purchase assembly from retired automobiles for remanufacturing; the remanufactured product shall in principle not be lower than the quality warranty period for new parts of the same original product; the parts remanufacturing enterprise may not reclaim or Remanufactured products of other companies that have not been authorized; remanufactured products shall enter the after-sales service system of automobile manufacturers for circulation; they shall not be sold directly to the social retail market; and remanufactured enterprises shall obtain trademark use rights of the original manufacturer of remanufactured old parts. .

Comments: Under the background of energy saving, emission reduction, and consumption reduction becoming the main theme of the auto industry, auto parts remanufacturing has also gone from behind the scenes to the front desk under the support of state policies. The remanufacturing of auto parts can effectively save energy and costs and reduce environmental pollution, and it is completely consistent with the circular economy society advocated by the state for energy conservation, emission reduction and consumption reduction. According to relevant officials of the National Development and Reform Commission, in the future, China will encourage consumers and public agencies to prioritize the use of automotive remanufactured products. Through 2 to 3 years of trials, it will explore policies, management systems, and regulatory systems that promote the development of auto parts remanufacturing industry. The market prospects of this emerging industry are immeasurable.