On the 16th, the World Trade Organization (WTO) rejected China’s appeal against an auto parts dispute dispute in favor of the United States, the European Union, and Canada. The WTO Appellate Body also recommended that China adjust its foreign auto parts import tariffs to comply with international trade. The level of the rules. Prior to this, China’s two appeals on this case failed. According to WTO rules, after the failure of this appeal, the verdicts of the appeal will no longer be overturned, and some high-end joint venture models may become the biggest beneficiaries of this appeal. Little impact on the overall car industry The key to disputes lies in the "Administrative Measures for the Import of Auto Parts That Constitute the Characteristics of the Vehicles" that China implemented from April 1, 2005, which stipulates that the imported parts that equal or exceed 60% of the value of the entire vehicle are collected in the same way as the entire vehicle. The tariff is 25%; while the import tariff for parts and components is 10%, a difference of 15% between the two. Officials from the Ministry of Commerce pointed out that the “measures†were implemented to prevent lawbreakers from using the tax difference between the entire vehicle and parts to evade tariffs. The United States, the European Union, and Canada believe that the above tariff regulations reduce the cost of auto parts makers' production transfer to China, causing the United States, Canada, and Europeans to lose their jobs. In an interview with reporters, industry sources stated that with the rapid expansion of the Chinese auto market, the localization of parts and components for the joint venture depot has been fully developed, and the impact of this appeal failure has become very small with timeliness. In an interview with reporters, Geshang.com president Chen Wenkai stated that in the past three years or so, the competition of the joint venture depot has become very fierce. In order to control the cost of the supply chain, almost all of them selected domestic parts and components suppliers. Vehicle production will not have a big impact. However, the appeal process won the development time for domestic auto parts suppliers. Even if it wins now, it will not change the current pattern. As China has long cancelled the restrictions on the shareholding ratio of foreign investment in the auto parts sector, the wholly-owned identity providers have also achieved sufficient localized production. Visteon’s public relations manager Feng Yingzhao told reporters that the failure of the appeal of this measure will not adversely affect Visteon’s business in China. High-end joint venture car prices or down Due to the short time of the joint venture and the high quality requirements of the brand, parts of the joint venture high-end models such as BMW, Mercedes-Benz and Volvo are imported. The appeal failed and they will be the biggest beneficiaries. Insiders pointed out that the matching of BMW, Mercedes-Benz and other high-end vehicles is difficult to achieve 40% of domestic components. If the "Regulations for the Import of Auto Parts That Constitute the Characteristics of the Vehicles" cannot be implemented, the cost will be reduced in the purchasing area. It will also accelerate the localization of high-end models, and the Volvo S80, which has recently attracted much attention, has caught up with the domestic market. Chen Wenkai pointed out that due to the limited market share of the joint venture high-end models, its impact will not be particularly great. However, there is more room for these depots to be provided on the basis of matching, and it is very likely that this will affect some of the large parts suppliers that are manufacturing in China. Relevant persons from depots such as BMW Brilliance and Beijing Benz said in an interview that it will take time to assess the changes brought about by this incident. Experts pointed out that if it is possible to effectively reduce the production costs of these depots, it is not possible to eliminate the possibility of the price cuts for the above-mentioned high-end models. Abs For Vacuum Molding,Asa Sheet For Vacuum Forming,Abs Plastic Sheet For Vacuum Forming,Vacuum Forming Abs Sheet Yixing Guanyu New Materials Co.,Ltd , https://www.plasticsheetsupply.com