At a large-scale gathering held in the previous day, the speech of the boss of a large-scale automobile enterprise group component company won the warm applause from the audience and the participants gave a high score to the speech.
The boss’s speech reflected the paralysis of China’s auto parts companies from the side. These issues restrict the survival and development of the current domestic parts and components companies.
l. All the joint ventures, foreign vehicles, and host companies of multinational companies in China have an original cooperative relationship.
2. Local interests in various parts of China directly protect the interests of local parts and components companies and there are local barriers.
3. China's auto parts companies have "entered the WTO" without forming a true economic scale.
4. In recent years, the situation of production and sales of cars in China has been very good, but most of them are foreign brands. These companies have their own procurement networks, are exclusive and become a new type of parts and components.
5. The foreign partner of the joint venture has formed a supporting system abroad.
6. The production costs of wholly foreign-owned spare parts enterprises may be lower.
7. Vehicle companies require domestic parts and components companies to cut prices, while CKD parts do not fall. Competition is obviously unfair.
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