Export of auto parts must change strategy

On September 17, the United States filed a complaint with the WTO accusing China of subsidizing its exported automobiles and parts. The U.S. Trade Representative's Office stated that China has given a large amount of export subsidies to auto and auto parts manufacturers in the "export base."

This is the eighth complaint filed by the United States against China since the beginning of this year. It is also the second complaint against automobile-related issues. The Chinese Ministry of Commerce responded: "The United States chose to announce this news in the United States where the automobile was produced in Ohio during the election campaign. This shows that the United States has taken measures against China because of the consideration of election politics."

The Chinese government has repeatedly reiterated that it firmly opposes the abuse of trade remedy rules, opposes trade protectionism, and will firmly exercise the rights of WTO members to protect the legitimate rights and interests of domestic industries. On the other hand, auto parts exports also need to change their strategies.

In February 2010, the six ministries and commissions of the Ministry of Commerce issued the "Opinions on Promoting the Sustainable and Healthy Development of China's Automobile Products Exports." While affirming the export achievements of auto parts, it also pointed out that, on the whole, China's automobile and parts exports and development There is still a big gap between the country and the newly industrialized countries (regions). Currently, it is still in its infancy. Excessive export operations, lack of brand and marketing networks, weak independent innovation capability, low added value of export products, and urgent protection of intellectual property rights Strengthening and other issues have restricted the development of automotive product exports.

In the document of the Ministry of Commerce, five "transformations" were proposed, namely, changing the structure of export products, promoting the transformation of parts and components exports from machinery-based to electromechanical and electronic products; changing the structure of export markets to provide after-sales and maintenance services. The market will change from a multinational company's global supply chain market to a multinational company; change the structure of export trade from a single product export to a combination of product, technology, and capital output; change the structure of export companies, from simple import-export companies to marketing The transformation of the company; transformation of the main structure of after-sales service, from the dependence on importer sales network to the self-marketing system.

To change the product structure, it is necessary to strengthen the independent innovation of enterprises, increase the technological content of products, and thus increase the value of products. For a long time, some people viewed the low wage as China’s comparative advantage. But where is this advantage, it is precisely the disadvantage. Low wages mean that workers do not get any benefits from increasing exports, but the benefits are given to others. Our companies also have lost the ability to invest in R&D, are unable to continue to develop, and are often hit by anti-dumping sticks. The real advantage is the advantage of technology and the advantages of the brand, so we must vigorously develop the export of high-tech products and encourage the creation of excellent brands.

To change the trade structure, we must shift from simply exporting products to capital output, technological output, and service output. Developed countries are very concerned about employment, so on-site production can not only bypass trade barriers, but also reduce trade friction. The way of production on the spot can be to set up a factory for investment, or it can be a cooperative production, and it can also acquire foreign companies.

In the GDP statistics model, the production of foreign capital in China is also counted, but those wealth are others. Under the GNP statistical model, the elimination of foreign capital production in China, and the statistics of overseas production of self-owned capital within the scope of the country, has truly increased domestic wealth, and therefore is more meaningful than GDP.

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