Dong Yang: China's auto industry reform must also be self-improvement

When China became the world's largest auto market, some reform policies related to it were facing more and more pressure and provocation from foreign forces.

On February 28, Dirk Moens, secretary-general of the European Union Chamber of Commerce, stated in an interview with foreign media that “the unfair treatment that European car companies have encountered in China due to the 'bus procurement catalogue' will urge European governments to take countermeasures.”

Recently, Dong Yang, Executive Vice President and Secretary-General of the China Automotive Industry Association (hereinafter referred to as China Automobile Association), expressed his clear and firm attitude to the China Business Daily: You will not allow me to enter Europe, I will not let you in China. Sell, see who in the end is terrible!

The Chinese car industry is not subject to foreign restrictions. With the deteriorating European economy, China’s auto market has become an important way for European companies to make profits. The European car brands occupy a huge proportion in the private car and official car markets in China.

According to a report released by the European Union Chamber of Commerce, the number of official vehicles purchased in China in 2012 is expected to reach 300,000 to 600,000 vehicles, involving hundreds of billions of funds. However, with the introduction of new catalogs, European car companies that are unable to enter the market means that they will probably miss out on this big one.

At the same time, China's independent auto brands, including the Great Wall and Geely, are also actively preparing to enter the European market through acquisitions, construction of plants and other means. The killer of the so-called "counter-measurement" of the European Union Chamber of Commerce is based on the needs of the development of this Chinese car company.

“If the country begins to take remedial measures for an industry, don’t expect its brand to be welcomed outside of the country.” The European Union Chamber of Commerce had previously made similarly tough statements about similar issues. However, this view was refuted by the Chinese auto industry represented by Dong Yang.

“Government procurement is not restricted by the WTO principle of universal access because government procurement is taxpayers’ money, and the items used by the government may also involve national security, so government procurement can make its own rules. Germany, the United States, Japan and other developed countries It's all so."

Dong Yang, who has personally participated in the WTO negotiations, is very familiar with the WTO accession rules. The EU Chamber of Commerce’s move is not only unreasonable but also illegal.

In fact, European car companies have enjoyed various aspects of preferential treatment such as tax reduction and exemption in China. At the same time, under the principle of “market-for-technology”, joint-venture car companies have earned a lot in China by producing and selling models. Huge profits in other markets.

Today, with the growth of the autonomous automobile industry, autonomous passenger vehicles are no less inferior to joint venture brands in terms of quality, and have a clear price advantage. In the small market of government procurement, the policy tilts toward independence, not only in line with national conditions, but also in line with international practice. Without prejudice to WTO regulations, China has the right to be more responsible and to set laws and regulations that are more in line with the interests of Chinese companies.

Accelerating and shortening the gap by itself has become an important issue facing China from a big automobile country to a powerful automobile country.

Dong Yang's point of view is that whether it is the enterprise or the entire Chinese automobile industry, the only thing that strengthens lies in the true independence. However, in the face of the dual tests of technology and brands, there are still many problems that need to be resolved in China's automobile road.

At present, the development speed of independent brands is accelerating, and the gap with international brands has been shortened to within 10 years. In particular, after entering 2012, China’s own brands including Chang’an, Chery and BYD have frequently released new achievements in core technologies. Dong Yang said that based on the current developments, Chinese car companies will have the opportunity to catch up with multinational car companies in the next five years.

In addition to brand and technology, Dong Yang believes that the system, fuel consumption, spare parts and overseas strategies are all key to whether Chinese auto companies can truly establish themselves globally and become strong global companies. For the future of the Chinese market, Dong Yang believes that it will be a win-win situation for joint ventures and self-determination.

The cultivation of automobile culture and the maturity of understanding of automobile consumption will become an important cornerstone for realizing this ideal. Only when China’s independent brands are truly independent and self-reliant can the Chinese car industry shake off the constraints of multinational companies and truly realize the rapid development of China’s automobile industry.