Recently, 188 U.S. lawmakers urged President Obama to crack down on China's "predatory" pricing measures, saying that China is threatening the U.S. auto parts industry. This move has further exacerbated China-U.S. trade frictions . In a letter to Obama, these lawmakers stated that they hope that the government will use existing legal powers to retain and protect US industries and job opportunities.

Options available to the Obama administration include filing a lawsuit with the World Trade Organization (WTO) or taking measures under the U.S. Trade Remedy Act to impose taxation or other restrictions on auto parts exports from China to the United States.

China's spare parts exports have grown rapidly

Ms. Mei believes that 75% of the U.S. auto industry's employment comes from the auto parts industry. China's pricing measures have made such employment conditions in U.S. states extremely precarious.

Previously, China adopted the "Regulations on the Administration of Imports of Auto Parts Constituting Vehicle Characteristics" and the "Rules on the Completion of Features of Vehicles to Comply with Completed Vehicle Components" formally implemented on April 1, 2005, to foreign auto parts and components. Import restrictions. At present, China subsidizes China's domestic auto parts production industry through various forms.

At present, a 17% value-added tax is levied on auto parts in China, increasing the total cost of auto parts and forcing domestic parts and components companies to expand outwards. Under the protection of policy preferences, in this "price war" with auto parts as the core in the world, domestic auto parts products have won a big victory, thus realizing 900 parts of Chinese auto parts exports since 2000. The rapid growth of %.

At present, there are a total of 4,712 auto parts manufacturers in the Chinese market with a total industrial output value of 550.6 billion yuan, sales revenue of 534.1 billion yuan, total profit of 35.8 billion yuan, and a sales margin of 6.7%. , is China's auto parts industry exports "strengthening" year, the export value from 10.6 billion US dollars surged to 15.8 billion US dollars, from January to August 2007 reached 12.2 billion US dollars, an increase of 30.4%. January-September 2010 , China's auto parts industry exports increased to 29.8 billion US dollars, an increase of 48%. From January to November 2011, its export value is as much as 47.233 billion US dollars, an increase of 28.94%. Among them, the largest proportion of exports The components of the driving system accounted for 42.28% of the total export volume. Among the components of the driving system, the total amount of tire exports accounted for 67.7% of the total export volume.

Kill a thousand self-defeat eight hundred

The primary reason for the increase in the prices of auto parts in China is the increase in national income. As a result, the wage level of workers has also risen. This has led to an increase in the cost of China's foundry factories and has affected the prices of export products.

At present, low-end auto parts exported by China are playing the role of high income and low consumption in the United States. Among the auto parts products exported by China, in 2011, the value of steel wheels imported from China by the United States reached 84 million U.S. dollars, which accounted for a large proportion of wheel transactions in the United States that year. If it is converted into the same number of steel wheels, will the percentage of price increase be maintained within the national acceptable range?

If the U.S. government imposes a tax on auto parts exported from China to the United States, the implementation of such punitive tariffs in China will result in Chinese wheel companies accumulating such additional costs on end products and eventually on automakers.

Currently, the hourly wages of American workers are similar to the daily wages of Chinese workers. If the United States simply conducts a simple boycott, it will cause an overall rise in the domestic automobile prices in the United States, and consumers will eventually suffer losses. The price of such end products should not be the result that the U.S. government and nationals hope to see.

The friction of Sino-U.S. trade and the political background of the U.S. election have played a role in "inflation." In order to re-election and stabilize the domestic leftist sentiment, Obama became even more hawkish on his attitude towards China’s trade, and he responded to the idea that Republican rivals called him "not strict on China's supervision." Therefore, relevant experts said, "This is another 'political show' that the United States has once again adopted to pressure China's trade."

In bilateral trade, friction is not conducive to the development and progress of the industry. Even if both parties in the trade have their own “wishful thinking” in trade, in order to realize the maximization of the interests of both parties, they should “kill the enemy” when the contradictions are prominent. The decision is unwise.

China's auto market has not been significantly affected

As early as March 30, 2006, the United States proposed to the WTO the "Auto Industry Industrial Policy" promulgated by China, the "Regulations for the Import of Auto Parts Constituting Vehicle Features" and the "Rules for the Verification of Vehicle Features Consisting of Imported Auto Parts". The complaint demands consultation with China. In previous Sino-U.S. trade disputes, China had promised that such disputes should be handled exclusively by the US Commerce Commission.

In recent years, the United States has already made a lot of obstacles in its trade with China. From the establishment of cross-sector trade law enforcement agencies targeting China and other emerging market countries to the revision of anti-subsidy laws, to the collection of punitive tariffs on products from countries such as China.

Sun Shiqing, an automotive analyst, said that the pattern of the auto parts industry is the result of the adjustment of the international industrial structure brought about by the development of economic globalization and is the inevitable outcome of the large-scale and most extensive international division of labor cooperation. The import of inexpensive, high-quality auto parts products is in the interest of U.S. consumers and is conducive to alleviating inflation. It is a necessary supplement to the U.S. economic development and industrial restructuring. In addition, the increasingly close Sino-U.S. economic and trade relations have also created a large number of employment opportunities for the United States.

Jia Xinguang, a well-known auto industry analyst, said that the Obama administration is implementing a policy of industrial return, which includes the automotive industry. In fact, this is also a manifestation of trade protectionism. “This practice can only increase the cost of American automotive products, lose the price advantage, and reduce the competitiveness of products, which runs counter to the US desire to control the auto trading initiative.”

Low-cost strategies cannot be the foundation of survival

Economic globalization brings about competition, cooperation and mutual benefit among countries in the world. With the increasing economic strength of developing countries, it is inevitable to experience the process of rebalancing of interests in the process of economic globalization.

For the American auto industry, and even other U.S. industries, even if U.S. economic strength is stronger, its trade protectionism should not involve every U.S. industry.

The United States adopts a policy of suppressing imported auto parts in China. It actually harms not only the unilateral interests of the American auto industry, but also the common interests in the Sino-U.S. bilateral trade process. Even if China successfully resists the import of Chinese auto parts, it cannot fundamentally revitalize the American auto industry.

Regarding the measures proposed by the US Congressmen to “strategize China’s predatory pricing,” China’s reaction to the current situation is not very strong, and China’s auto market will not be affected too much.

It should not be overlooked that the U.S. government will target spearheads to auto parts and remind China to pay attention to the foreign trade-related methods and methods of the auto industry. Luo Lei, deputy secretary-general of the China Automobile Dealers Association, said that the low-cost strategy of auto parts can not become the foundation of this industry, compared to this, it should also improve the quality of China's auto parts products, while the product's The promotion of an appropriate proportion of prices will be beneficial to the formation of a healthy competitive environment for the industry and to the further development of bilateral trade relations between China and the United States.

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