China's huge market potential and low labor force are attracting more and more multinational auto parts and components groups. According to statistics, of the more than 5,000 automotive parts and components companies in the country, more than 1,200 are foreign-invested companies, and most of them are among the world's top 500 companies. These multinational companies are in the leading position in the world in terms of operating scale, technical strength, and multinational operating experience. They have the ability and experience to participate in the development of new models, system development, and module supply of vehicle companies. Almost all of them are multinational automotive groups. 6+3) system, module level matching primary or secondary supplier. The business is mainly concentrated in the areas of bodywork, engines, transmissions, axles, frames, steering, brakes, electronics and appliances, trims, air conditioning, passenger protection systems, sound and emissions. With their strong capital, technical strength and rich operating experience, they quickly occupied the commanding heights of market competition in our country. Local auto parts companies are mainly engaged in the production of labor-intensive and processing-type products. The products mainly concern seats, batteries, wheels, bumpers, universal joints, transmission shafts and windshields. These products have technical content requirements. Lower. With regard to key automotive parts and components with high technological content, many Chinese auto parts suppliers rely on the support of large parts suppliers in the world in terms of technology, capital, and sales channels. The dependence of Chinese auto parts suppliers on foreign investment Far more than the statistics reflect. And most of them just stay in the imitation stage. After China's accession to the WTO, the world's major auto parts manufacturers have stepped up control of their dominant position in China. By acquiring existing local parts and components companies and increasing the proportion of investment in joint venture bases, the China plant will be transformed into an absolute holding company or a wholly-owned subsidiary. The "Administrative Measures for the Import of Auto Parts That Constitute the Characteristics of Complete Vehicles" promulgated in 2005, and the Chinese government are continuously improving the technical regulations in the field of environmental protection and safety, and plans to implement a technical standard that is equivalent to developed countries in Europe, America, Japan and other countries by 2010. These favorable factors have further stimulated the investment of foreign-invested parts and components in China to enter a new small upsurge, which has led foreign-funded OEMs and parts and components companies to accelerate the introduction and localization of high-tech products. If Volkswagen builds a new transmission assembly plant, BorgWarner will start producing turbocharged plants in Ningbo. The production of products such as shock absorbers, power steering, airbags, global positioning systems, and automatic transmissions by local manufacturers is in a preliminary stage of development, and some are even in the starting stages. Crucially, local auto parts companies with high-tech products are facing an unfavorable situation in procurement, and it is difficult to obtain growth opportunities. Due to the traditional supporting relationship in history, foreign capitals have basically transplanted foreign matching relationships in the fields of high-tech content and high added value. On the other hand, due to the pressure of competition and the need for product upgrades, the rising independent brands are also increasing their purchases of foreign-funded or joint-venture component suppliers in high-tech products. According to a Boston survey, multinational parts and components companies in China are much more localized than automakers in the four major aspects of R&D, local procurement, manufacturing, and sales. With the deepening of localization of foreign investment in China, they will become increasingly entrenched in China, further squeezing the living space of local manufacturers that target high-tech products, especially high-tech assembly products.
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