Starting from the data of China's auto parts export, the paper points out that the export of spare parts has become the main force of China's auto exports, and analyzes the direction and categories of China's auto parts export and four main export channels. On this basis, the five competitive advantages of China's auto parts export are discussed in detail: low cost, foreign capital, economies of scale, latecomer advantages and tariff advantages. Finally, the five problems that restrict the export of auto parts in China are analyzed: low tech content of export products, quotations, orders, sunk costs, trade barriers, and relevant suggestions are put forward.
Current situation of auto parts export in China
The following is the statistics of the export amount of auto parts and all automobile products in China since 1991 (see Table 1).
It is not difficult to see that, in the past 15 years, the export amount of auto parts in China has been increasing, especially since China's entry into the WTO, and the annual growth rate is about 3%. At the same time, the proportion of auto parts export in all automobile products exports has increased year by year. Over the past 25 years, it has reached over 8%. It is the absolute main force of China's auto products export.
2: Export direction and product type
From the point of view of export, the developed countries such as the United States, Japan, the EU and other countries are the main exporters of auto parts in China. At the same time, the development of some emerging markets in the Middle East, South America and Africa has also achieved success. The establishment of factories abroad and the acquisition of foreign enterprises have also emerged.
In terms of export products, mainly in labor-intensive, low technology content products, base, bumper, glass, wire harness, brakes, clutch, cooling gas, muffler, universal joint which has the traditional comparative advantages of export products occupy a very high proportion. The export of parts with high technology content also has a certain development, but most of the core technology is still in the hands of large international spare parts manufacturers.
3: At present, there are four main channels for automobile export in China
The first channel is to enter the international market with the whole vehicle export, which is attached to the whole vehicle enterprise. Taking the liberation of FAW as an example, the foreign side usually first selected the vehicle of the vehicle first, then went to the engine factory for inspection and finally exported. This is a much more domestic product export at present.
The second channel is the foreign purchase directly from the foreign side, that is, through the global purchasing system of the multinational automobile companies into the international market.
The third channel is the direct sales of the production enterprises. By making two levels of suppliers in the foreign market, the products are exported directly from abroad to ensure the continuous growth of the export of the enterprises.
The fourth channel is to rely on foreign trade companies. Professional foreign trade companies are engaged in import and export business for a long time. They are familiar with products and markets, have fixed sales channels, and can grasp the dynamics of the international market in a timely manner. At the same time, they have many advantages in organizing their sourcing channels.
The main competitiveness of China's auto parts export
1: Cost advantage
1. Low labor cost
The low labor cost advantage is very important for the formation of the international competitiveness of the auto parts industry. Our country has not only low cost labor force, but also a large skilled technician team. The low labor cost makes the competitive advantage of our labor - intensive components very obvious. The advantage of labor force is the most competitive advantage of China's auto parts export at present.
2. Land cost advantage
China is in the middle stage of industrial development, and the price of land is at a lower level compared with the developed countries and even the other countries in Southeast Asia. In addition, in order to promote industrial development in the region, especially attracting multinational companies to local development, various policies have been put out to reduce land use price. Moreover, China's vast central and western regions and the old industrial areas in Northeast China need to be developed and revitalization, which is also conducive to maintaining sustainable low cost advantages in terms of land elements.
2: The active introduction of foreign capital
China attaches great importance to the introduction of foreign investment, and gives great concessions to foreign investment in the tax rate, the investment environment, and the protection of the rights and interests of foreign investors. This not only improves the income of foreign capital in China, but also greatly reduces its investment risk, so that a large number of foreign investors, especially large multinational companies, are willing to invest in China.
Whether the introduction of a foreign capital can be translated into the expansion of exports depends on whether it is directed by export. With the change of the life cycle, auto parts have entered the standardized production period, and the key role is the cost of production. As the above two factors, China's manufacturing industry in the cost advantage is very obvious, so many world famous auto parts enterprises in China have established a number of joint ventures and foreign-funded enterprises in China, as the horizontal integration of the parts production base, conveying parts to each vehicle production base worldwide. At the same time, the entry of these spare parts giants also made the major auto production companies set up purchasing centers in China.
3: The scale advantage brought by the rapid development of the automobile industry
The automobile industry of our country is stepping into the stage of high-speed development, and the output of automobile is getting higher year by year. The income of auto parts production in China is increasing. The growth of domestic automobile production and sales has brought the demand for auto parts to expand year by year, which will generate two economies of scale and reduce the average cost of products.
From the internal point of view, mass production can increase the utilization rate of the production line, the implementation of the professional division of labor, so as to improve the production efficiency, save management costs; externally, mass production can also establish production technology, stable contact with other manufacturers, suppliers of raw materials to improve the material negotiations with the bargaining power, and enhance the customer trust of enterprise products the psychological and so on.
4: Advantage of backwardness
This means that in a technological aspect, if a country is in a backward position in the early stage of industrial development, it will be able to achieve rapid growth by imitating the developed countries. The backward countries can introduce advanced equipment, technology, management, talents, funds for development, and even advanced development mode to enhance their individual strength and competitiveness as soon as possible, implement catching up strategy and achieve large-scale export.
China's manufacturing industry as a developing country, in the auto parts development of globalization and internationalization under the background of division has more play to the advantage of the conditions.
5: Tariff advantage
At present, the automobile industry is still a key protected industry in foreign countries. Foreign governments are now more willing to accept the new protectionist view: support their industries with strong advantages and promote their exports, so as to expand domestic employment and national income. And the tariff is a sharp weapon in its hands.
For the tariff of automobile manufacturing, foreign generally use a waterfall tariff system that imports of raw materials and parts for lower tariffs on imported cars, and a nominal tax rate is higher, so that a much larger degree of protection for the effective protection of the final product of the import parts rate than the nominal rate of protection display the. For China's spare parts export, under no discriminatory tariffs, this low tariff policy is undoubtedly a great benefit.
Problems and suggestions on the export of auto parts in China
1: Technology is relatively backward
The development ability of the new products of our country is weak, the export products with the intellectual property right are very few and the technical content is low. At the beginning of the life cycle of the new product, the factors leading to the export of the products are still the technology, with the technical advantage, and the export initiative is also mastered. With the acceleration of vehicle renewal, the proportion of standardized production time in the life cycle is also decreasing. If we don't focus on technological progress, the time for us to export is also going to be shorter. Therefore, how to realize the transfer of the core competitiveness of China's auto parts export from low cost labor force to technology lead has become an important issue. The following suggestions are made as follows:
1. Produce and export subsidies to technology intensive products to help them gradually establish competitive advantages.
2. To attract foreign direct investment. The technology transferred through the FDI channel is generally much more advanced than the technology of the local enterprise. Moreover, unlike the simple technology licensing, direct investment firms often bring the transfer of their technical personnel, management system and other packages to maximize the utilization of the transferred technology, which can break through the limitation of our new technology absorptive capacity.
3. In the short term, the development of OEM can also make up for the lack of export of China's technical products to a certain extent.
2: Price and price issues
At present, some domestic manufacturers, in order to be eager to open the international market, often quote prices far below the international average. This is not conducive to the long-term development of enterprises. Secondly, in some big companies, the lower the price is, the better the quality of a product will be greatly reduced if there is no reasonable profit margin.
More seriously, the domestic enterprises producing export products are competing with each other, which may cause foreign anti-dumping complaints.
In order to solve this problem, we need the joint efforts of many forces. First of all, the domestic manufacturers must first master the international quotations to avoid the adverse consequences caused by the disorderly quotations when they offer quotations to foreign businessmen. Secondly, industry associations should also organize export enterprises to carry out price self-discipline and oppose the export of price. In the event of anti-dumping complaints against China's auto parts industry, the relevant departments of the automobile industry should organize enterprises to actively respond to the complaint.
3: The issue of sunk cost
The so-called sunk cost refers to the cost that the first time has been invested, and if the contract or project is cancelled, it will not be able to pay. Foreign buyers often bring auto parts drawings when purchasing parts, which requires the exporters of our country to invest a fee in advance, including mold development. But the domestic parts enterprises for fear of die for naught, always want to sign a contract to open mold. Since the finished product is not available, the buyer is unable to make a comparison. At the same time, we feel the lack of sincerity of our cooperation. It is possible not to cooperate with us.
China's spare parts enterprises should believe in their own strength, boldly carry out the initial investment, make the mould, and produce the finished product. This can give people a sense of sincerity and increase the chance of successful cooperation.
4: Order problem
At present, there are two main types of export orders for auto parts in China: one is after sale market order, the other is OEM order.
Although the export of spare parts in China is growing rapidly, most of the enterprises are doing after sale market orders, accounting for more than 85% of the export of China's spare parts. This order business belongs to the pure international export trade, and the entry threshold is low and the time is fast. Compared with OEM orders, this order is unstable and can not learn advanced technology.
Therefore, how to seize the OEM, is the China parts enterprises long-term export. This not only requires China's export enterprises to actively strive for OEM orders, but also to learn and adapt to the operation process of OEM.
5: The issue of counterfeit and shoddy and trade barriers
A figure released by the Federation of motor vehicle and equipment manufacturers (MEMA) shows that the annual output value of counterfeit auto parts is 1 billion 200 million US dollars, of which a large part comes from China, India and Korea. In the field of more and more automotive parts, such as brake pads, windshields and so on, there is a counterfeit product that may pose a threat to the personal safety of consumers. Therefore, the import and Export Chamber of Commerce of China's mechanical and electrical products issued a warning. After the textile, TV and semiconductor chips, China's rising auto parts industry may face trade barriers from the US.