Industrial policy has pointed out the right direction for parts and components industry
He Desheng, Executive Director of the Chinese Society of Automotive Engineers and a professor at Beihang University’s School of Automotive Engineering, expressed his strong support for the "Automobile Industry Development Policy," particularly Chapter 8 on "Components and Related Industries." In an interview with reporters, he emphasized that this chapter sets a clear and forward-looking direction for China's auto parts industry. He pointed out that while the term "domesticization" is not explicitly used in the policy, the language reflects a broader vision of self-reliance, openness, and global integration—making it more comprehensive and aligned with the historical development of China’s automotive sector.
According to He, the policy outlines three key levels for the development of the auto parts industry. First, it stresses the importance of integrating component development with整车 (whole vehicle) development. Without high-quality components, even the best-designed vehicles cannot achieve optimal performance. However, high-quality parts alone are not enough; they must be well-matched and integrated into the vehicle’s design. He gave an example of a domestic car model that uses imported high-quality parts but still fails to deliver top-tier performance due to poor coordination between components and design. This highlights the need for synchronized development between the whole vehicle and its parts.
Second, He highlighted the necessity of investing in fundamental and specialized technical research, especially in high-tech areas such as electronic fuel injection (EFI), airbags, ABS systems, and new energy engines. As a major player in the automotive industry, China must develop systematic and modular capabilities for these critical components, which should be provided by specialized companies to meet vehicle manufacturing needs—similar to practices in developed countries.
Third, He noted that the production of general auto parts must adhere to international standards, establish efficient production lines, ensure consistent quality, reduce costs, and eventually gain access to the global procurement system. This is essential for China to compete globally and improve its position in the international supply chain.
He also praised the policy for redefining the government’s role in supporting the auto parts industry. It shifts from a previous model where state-owned enterprises operated independently, to one where integration into the global supply chain is encouraged and supported through national policies. This approach aligns with World Trade Organization principles and promotes a more open and competitive environment.
Regarding related industries, He stressed that their development is crucial for the success of the entire automotive sector. He noted that while the auto industry has faced challenges in technological advancement, the development of related industries has been even slower, creating bottlenecks. The problem lies not in a lack of willingness from other sectors, but in insufficient coordination and communication under the current management system.
Chapter 8, he said, addresses these issues by setting national-level tasks for various industries, showing that the automotive sector has become a strategic pillar of the national economy. He concluded that if all stakeholders implement the policy effectively, China’s auto parts and related industries will experience significant growth and development.
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