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    China's auto parts market of the development of the world

           In recent years, China's auto parts exports relatively fast growth, China's auto parts market to gradually enter the world of the trend of development, accession to the WTO after the first three years (1999 ~ 2001), the average annual growth of exports of automotive components 29.3 %. After a few years, China's auto parts exports an average annual growth rate as high as 39.0 percent. Last year, China's auto parts exports to 12.12 billion U.S. dollars, up 36.3 percent. China's auto parts exports to labor-intensive, low value-added products and some labor-intensive products in the world, occupies an important position, some enterprises have already enter the global procurement networks of transnational corporations. Overall, China's spare parts market from the inside since the beginning of external sales to large exports, and become a world of big market.
           This world of Chinese auto parts market is the inevitable development direction, in the new global system of production, the auto industry to further deepen the international division of labor and refinement, but also in progress. By the division of labor within the industry to develop products division of labor within the global automotive industry continue to extend the chain. States market through the allocation of resources and production elements of globalization, minimizing the cost, close to the market, which is motor vehicles and spare parts business vitality and international competitiveness of the key.
           China's auto industry after 50 years of development, basic establish a relatively complete system of auto industry production. Now China has become the world's third largest car producer, the second largest consumer market and the largest potential market in the development of the automotive industry, driven in recent years, China's automobile spare parts trade and rapid development.
           First, vehicle exports have been expanding. Since joining the WTO, China's exports of cars an average annual growth rate as high as 95.6 percent. Last year, exports of cars up to the amount of 3.12 billion U.S. dollars, an increase of 97.3 percent.
           Secondly, exports mainly to auto parts. China's auto parts exports last year amounted to 12.12 billion U.S. dollars, an increase of 36.3 percent, automotive products accounted for 76.5 percent of total exports.
           Overall exports mainly to commercial vehicles, car exports increased significantly. Last year, China exported 223,728 commercial vehicles, cars accounted for 69.0 percent of total exports, exports of 92,495 cars, an increase of 197.2 percent.
           Diversification of export markets to develop in the direction. Last year, China's exports of automobile products reached 207 markets, including vehicle exports to developing countries and regions mainly automotive parts exports mainly to developed countries.
           Since the reform and opening policy, China's automobile products, manufacturing capacity and management level gradually with international practice, China's auto industry's strength in the growing. At the same time, the rapid development of China's auto and auto parts market as the domestic and foreign enterprises to provide an excellent competitive arena and lucrative returns.
           From the domestic market share, vehicle, the foreign-funded enterprises and brands in China's car market ratio as high as 74 percent. In the field of spare parts, foreign-funded enterprises accounted for the major domestic car parts joint ventures matching share of more than 60 percent, and become a domestic commercial vehicle business-critical spare parts and assembly of major providers.
           From the export ratio, last year, foreign-funded enterprises in China's auto parts exports of spare parts exports total 58.8%; vehicle exports, Guangzhou Honda automobile production base last year, export 24,000 cars, ranking the country first.
           From economic benefits, the major transnational companies in the automobile and parts factories, the profits far higher than the average water level of the home country.
           The rapid growth of China's car market to transnational corporations bring many opportunities and profits, the market is a win-win situation. Therefore, in recent years, multinational companies have increased investment in China, and investment fields have also been extended to research and development from the production, marketing, logistics, finance, production and other fields upstream raw materials.
           Recalling China's spare parts market opening process, we can deeply feel that over the past 30 years, China has always adhered to the basic national policy of opening to the outside world, the opening up of the auto industry continues to increase.
           First, imports of automobiles and spare parts the "threshold" greatly reduced. China's overall tariff level from 43.5 percent in 1992 dropped to 9 percent last year, the actual tariff level to about 6 per cent, close to the level of tariffs in developed countries. Last year on July 1, automotive vehicle tariff to 25 percent, spare parts tariffs to 10 percent. At the same time, since January 1, 2005, China ended a 20-year quota system.
           The second is adjusted to meet the needs of WTO rules and related industrial policies. After joining the WTO, the Chinese Government to amend the automobile industrial policy to phase out production of motor vehicles category, type or model restrictions; gradually open up the local government approval of the joint venture vehicle access; release engine joint venture shares than the limit allowed Holdings of foreign capital, set up in the uniform application of domestic and imported cars and parts of laws, regulations and standards.
           Third, trade in services on the further opening up of foreign-funded enterprises. From 2005 China began to open up foreign trade rights. In addition, the progressive liberalization of automobile ancillary distribution services, allowing foreign non-bank financial institutions in the automotive consumer services business, allowing foreign insurance companies operating statutory insurance and will gradually open up transport services, maintenance services, freight forwarding services.
           The fourth is the national trade policy on the automotive industry, foreign-funded enterprises to enjoy national treatment. In the Ministry of Commerce, National Development and Reform Commission jointly identified the first batch of 160 cars and parts export base in the enterprise, for the 61 foreign-funded enterprises, accounting for 39 percent.
    The market's development is inseparable from the development of domestic and international environment, and the domestic environment is very crucial, therefore China in IPR protection and energy conservation, such as emission reduction the focus of concern on the issue of continuously intensify our work, have achieved remarkable results , To optimize the investment environment in the market, attract foreign auto parts enterprises in China joint venture and cooperation, achieve mutual benefits and win-win situation played a positive role in promoting.
        
    China's spare parts market growing by the development of parts of the world has added new vigor to spare parts enterprises around the world have brought tremendous business opportunities. Parts of the world's domestic market will also bring new business development momentum and broad room.


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