On August 25, the German “Stuttgart” reported that the Chinese government has notified a number of German auto parts suppliers that it will not be allowed to operate independently in China in the future. According to Stephen Wolff, CEO of Oke Green, a German auto parts manufacturer, who is interviewed, German parts suppliers will be required to operate only as joint ventures.

British Reuters analyzed in this connection that if this decision is confirmed, then it is in line with China's regulatory market entrenched in the National Development and Reform Commission to take a tougher position on the foreign automobile industry. Not long ago, due to the existence of monopolistic behavior in China and overcharging of Chinese consumers, the China Development and Reform Commission investigated the foreign automobile manufacturers.

Some people believe that the break-through of wholly foreign-owned parts and components may be another "scalpel" raised by China's monopoly on parts and components. This made foreign spare parts companies shudder.

After more than ten years of rapid development, the Chinese government has noticed that China’s auto trade accounts for a relatively large proportion of the world, but local auto and parts and components companies have not received corresponding gains; for this reason, the Chinese government began to take measures to fight for local companies. Greater interest. The lack of core technology competitiveness of local parts and components industry is the root of China's auto industry rather than strong. On the contrary, there are reports that even if Japan does not have a vehicle factory, it can rely on auto parts companies to become a car power. This is evident after the earthquake and tsunami in Japan, including European and American automakers.

Liu Benzhu, deputy general manager of Guangzhou Sanwu Auto Parts Co., Ltd., said that although there has been some development in China's auto parts industry, it is mainly concentrated in foundry and foundry industries, which have low technological content and low added value, and lack core technologies. At the same time, the cost advantage of these parts and components companies has been reduced after the localization of foreign investment in the construction of factories. As a Japanese component supplier, they have already started operations in China and exported them overseas.

“China wants to acquire technology, but in the parts and components industry, foreign companies can only provide technology on their own initiative only if they are joint ventures.” Wolff said, but if this continues, it will pose a threat to intellectual property rights, and 50% of the company’s equity will be taken. Go, this is almost a kind of "requisition."

According to the statistics of the American Aowei Consulting Company, in 2012, global automotive suppliers invested R&D expenses of 49 billion U.S. dollars, equivalent to 69% of the R&D expenditures of the automotive industry. Especially the giants of multinational parts and components are investing significantly more than whole vehicle companies. It is estimated that by 2025, the overall value of parts suppliers will account for the entire automotive industry from 77.3% to 81.1%. The parts industry will become increasingly important to the automotive industry.

In contrast, statistics from the Chinese State-owned Assets Supervision and Administration Commission show that in 2012 China's auto parts and accessories manufacturing technology accounted for only 2.4% of operating revenue. Some cross-border component giants such as Bosch may even exceed 10%.

Since China's accession to the WTO opened up its parts and components industry, it has accumulated serious problems for more than a decade. First of all, lack of R&D investment and lack of technical product upgrades. At present, Chinese parts and components companies generally adopt the "to map processing" model, there is no core technology, while the strength of foreign parts companies comes from huge R & D investment and continuous technological innovation.

Secondly, due to the strong cooperation between foreign-funded parts companies and OEMs, it is difficult for Chinese parts and components companies to obtain a level playing field. “As a parts and components factory of a multinational automobile company such as Volkswagen, its share of the company’s shares is almost 100%. Its profits and costs are difficult to be known outside, and it constitutes a monopoly on the market and enjoys huge profits, but it has not contributed to the technological progress of the Chinese auto parts industry. “Analysts in the auto industry analyzed that it is time for China's “top-level design” to correct, and the absence of a component policy for the auto industry as a pillar of the country is actually the main reason why China’s multi-year vehicle companies are large and not strong.

However, when reporters asked major German auto suppliers including Bosch, the mainland and Cummings to see if there was any change in China's parts industry policy, most of the above companies did not understand the details.

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