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Statistics from the China Association of Automobile Manufacturers show that Audi cars sold a total of 54,579 domestic Audi cars last year. Domestic BMW cars sold only 17,582 vehicles last year. The domestic Cadillac sold only 1,698 vehicles throughout the year, and domestic Mercedes-Benz cars sold only 773 vehicles.
Latest news Zhang Wei, deputy director of the Department of Electrical and Mechanical Services of the Ministry of Commerce, made it clear that: We did not violate the relevant rules of the WTO, our purpose is to fight against tax evasion.
A person familiar with the situation revealed that the opposition-defending campaign led by the EU is actually a product of the unbalanced ratio of investment and output of European luxury car companies dominated by Mercedes-Benz, BMW and Volvo. The above-mentioned major luxury car manufacturers have all achieved domestic production in China in the name of a joint venture and in the form of CKD assembly. However, the unsatisfactory sales in the Chinese market have led to their tit for tat on this component policy.
Because of conflicts of interests
Reasons for the dispute: The European Commission announced on March 30 that the European Union has joined the United States in requesting bilateral consultations with China on the issue of tariffs on auto parts under the framework of the World Trade Organization.
Party A: The EU believes that China's regulations on import tariffs on auto parts are inconsistent with the rules of the WTO. According to the European Union, China imposes the same tariff as a complete vehicle on components that equal or exceed 60% of the vehicle's value, which in effect amounts to disguising the “proportion of localization†of components.
Party B: The Chinese side believes that this provision is mainly to prevent some foreign auto makers from "disguised tax evasion" by "dividing cars into zero."
Voice-over: In accordance with the relevant provisions of the WTO, parties to a dispute must first conduct bilateral consultations for a period of two months. If no agreement can be reached, the disputing party can seek arbitration from the WTO Dispute Settlement Body.
Neutrality: The European Commission’s trade officials said that the auto parts tariff issue is only an “ordinary problem†in China-EU wide trade relations. The EU had negotiated with similar issues on India, Canada and India and Nysia.
In order to combat tax evasion
Zhang Wei, deputy director of the Department of Electrical and Mechanical Affairs of the Ministry of Commerce: We have not violated the relevant rules of the WTO. The purpose of the "Administrative Measures for the Import of Auto Parts That Constitute the Characteristics of the Vehicle" was to crack down on tax evasion.
Wu Jiahuang, Vice Chairman of the China World Trade Organization Research Association of the Ministry of Commerce: China has not violated its commitments. After joining the World Trade Organization, China has already amended the investment regulations through the legislature, and no longer makes localization mandatory requirements for automobile production.
How much is the key tariff
The "Measures for the Administration of Imports of Auto Parts That Constitute the Characteristics of Complete Vehicles" (hereinafter referred to as "Measures") released by the Chinese government has become a focus one year after its implementation.
Focus reason: On March 30, the EU and the United States jointly lodged a complaint with the World Trade Organization, raising doubts over China’s “Administrative Measures for the Import of Auto Parts That Constitute the Characteristics of Complete Vehiclesâ€, and demanded that China revise its auto parts tariff policy as soon as possible and release parts and components. market. If the three parties cannot reach a consensus after the 60-day consultation period, the World Trade Organization will send a panel of experts to hold a hearing on the dispute and make a ruling.
Focus: The "Procedure" stipulates that if the proportion of the value of imported car parts to the value of the entire vehicle exceeds 60%, a 25% tariff shall be levied on parts and components, which is the same as the tariff paid on imported vehicles; If the proportion of car value does not exceed 60%, the tariff will only be 10%. “Don't underestimate this 15%, the key to the debate is here,†said one trade representative.
Focus playback: The "Method" undoubtedly lights up the "red light" on CKD production cars. When a CKD production car is imported or imported, the car enters in a state of complete dismantling, and then all parts of the car are assembled into a complete car. In the introduction of foreign advanced technologies for automobiles, China initially adopted the CKD production method, bought all the components of foreign advanced models, and assembled it into vehicles in China. Prior to this, many auto manufacturers imported parts and components from various ports, and then they were assembled by Chinese factories to escape the taxes of the entire vehicle.
Result: After the implementation of the Measures, automobile manufacturers have turned to purchase domestically produced parts or adjusted their own production lines to meet the needs of the new policy. This change is not accepted by foreign auto parts manufacturers.
The trade deficit is the root cause
Those who took advantage of the fire: Of course, it is not just the European Union that has lost interest because of the "Measures." The other is the United States. According to statistics of the U.S. government, its trade deficit with China in 2005 reached US$2.1 billion, an increase of 20% from 2004. The auto parts trade accounted for a considerable proportion. According to statistics from the US Department of Commerce, China’s auto parts market output value reached US$19 billion in 2004, while in 2005 China’s auto parts imports from the United States declined sharply, at US$542 million. In the same period, the output value of parts imported from the United States from China soared by 35% to US$3.2 billion.
On this issue, the reporter consulted relevant experts of the WTO Institute. Experts said that Europe and the United States have joined hands in blaming China's auto parts import tariffs, indicating that European and American trade policies towards China have become increasingly hardened. However, under the consideration of "win-win" for WTO, the results will not be worsened.
"As long as both parties sit down and talk, things are not difficult to solve," said the expert.
Japanese and South Korean counterparts "work hard"
In this dispute, the EU and the United States rushed ahead. What did Japan and South Korea do at this time?
Experts from the China Association of Automobile Manufacturers said that Japan and South Korea have made progress in their development. When the European Union and the United States complained about China’s auto parts tariff policy, their Japanese and South Korean counterparts were really “work hardâ€.
"Hard work hard": First take a look at Japan's Honda company, they are secretly doing something far more than the release of CIVIC and Sidi two domestic new cars meaningful. Just two months ago, a new Honda parts company announced that it will lay the foundation in Foshan, Guangdong, will be used to produce automotive powertrain components such as transmissions, and will be put into production in 2007.
What does this mean again?
Experts said that the powertrain that can be made domestically is a dream for those Western automakers. Prior to this, Honda had already owned Dongfeng Honda in China. The joint venture company established in 1998 focused on producing core components such as engines. Now it is forming a manufacturing capacity of 360,000 engine assemblies and more than 480,000 sets of components. In addition, Japanese parts and components companies all over the southeastern part of China are enough to allow Honda Motors to handle the “measures†issued by the 4 ministries in China.
"Close to the water to get the first month"
Zhong Qing of the WTO Institute believes that: in Japan and South Korea, car manufacturers and suppliers are a closely tied relationship. This relationship makes them possible for the sake of common interests, and manufacturers will not blindly crush the suppliers. The supplier also fully believes the manufacturer's judgment.
In fact, when Beijing Hyundai was first established, Hyundai Motors ignored many Chinese suppliers around Beijing, but introduced the supporting partners of key components with the fastest speed. This may not be the case for China's indigenous automotive industry. Positive influence, but it allowed Beijing Hyundai to bypass tariff barriers and allow it to dominate the market.
Another factor that has been neglected is that, in terms of the Chinese market, Japan and South Korea have an excellent geographical position compared to Europe and the United States. The senior car commentator Zhong Shi believes that the distance between Busan, South Korea, and Fukuoka, Japan is even closer than Shanghai to Beijing. This close-range formation of another advantage of Japanese and South Korean companies - even if there is not a local parts manufacturer in Japan, its parts manufacturers in China can provide instant supply for Japanese vehicle manufacturers, although the cycle may be better than in Japan The supply is a bit longer, but China also has a low-cost labor advantage.
Equal treatment: In fact, the "Measures" treats car makers in any country in the world as equals. Why Japan and South Korea seem to be indifferent when the United States and Europe are in fear, and the answer is not hard to find.
Vehicle joint venture threshold will be raised
The government stated: “Even if this complaint finally ruled that China lost, the Chinese government will continue to take other measures to stop this kind of CKD assembly mode that does not have much added value. The most direct way would be to conduct multiple layers of approval for joint venture projects. The significance of the check." The head of the China Association of Automobile Manufacturers policy research said.
“Regardless of whether the EU and the United States are successful in accusing or not, China will continue to increase its approval of foreign automobile companies’ investment projects in China in order to control the prevailing wind of CKD assembly,†said Jin Yongsheng, an analyst at Xinhuaxin Market Research.
The objections to China's "Administrative Measures for the Import of Auto Parts That Constitute the Characteristics of Complete Vehicles" are the most direct reason why this time Europe and the United States chose to join forces. Since April 1st last year, China’s regulations governing the import of auto parts and components must be taxed at the applicable tax rate of the entire vehicle, and the former 10% is adjusted to 25%. This has caused dissatisfaction from the EU and the United States. . It also triggered the beginning of the "story."
Policy significance: The prevalence of CKD production methods in the domestic automotive industry has caused a large number of domestic companies to evade taxation on imported vehicles in the name of spare parts. On the other hand, it has intensified the dependence of domestic companies on imported spare parts and hindered the core The localization of parts and components has inhibited the development of the domestic parts and components industry.
In addition, in addition to the cooling of the investment boom in the domestic automotive industry in the future, besides this, China's auto industry has entered a new round of phased excess capacity, which is another major factor leading the country’s macroeconomic control to slow investment. The latest “Notice of the State Council on Accelerating the Adjustment of the Industry Structure with Overcapacity†urges the new “disguised†requirements for self-owned brands to re-emphasize the country’s negation of the CKD assembly production model of some European and American automotive companies in China.
Jia Xinguang, chief analyst of China Automotive Industry Development Consulting Co., Ltd., analyzed that with the implementation of the “Measuresâ€, the localization rate of economic cars will increase significantly in the future. The Guangzhou Toyota Camry, which will be offline on May 23rd, has commented on the localization rate of up to 70%.
"If there is not a complete set of components and systems and policies and regulations, then our country's auto industry is just a castle in the air," Jia Xinguang said without hesitation.
Although there is still a period of time from May 31, various information shows that the attitude of the Chinese government will not change.
It seems that regardless of the outcome of this dispute, the Chinese government’s policy will not change in the slightest: the joint venture vehicle threshold will increase.
Sand and gravel aggregate play an important role in making up building materials like concrete, which makes the separation and screening process extremely necessary.
Sand making production line is also called sand and stone production line. And the sand production line is a kind of special equipment for producing construction sand and stone. The sand making machine for sale is often needed in many fields, and this processing line can meet the requirements of simultaneous production of stone and artificial sand.
The sand manufacturing plant can crush rock, sand, gravel and other materials into various size in accord with the requirement of construction sand. Sand made by sand production line has uniform size and high compression strength, and this kind of sand is much more in line with the construction requirements than the sand processed by the ordinary hammer Sand Crusher Machine.
Three Systems of Sand Plant Equipment:
sand plant mainly has three systems. Here is their basic information:
Firstly, the feeding system. The system send raw material to Sand Crusher and sand screening machine. According to crush and screen process, feeding equipment includes vibrating feeder and other types of feeding machines.
Secondly, the crushing system. The system is the heart of the whole set of sand processing equipment. The work of sand crushing plant system is to crush different varieties of ore raw materials into the required size of the finished product. A complete stone production line includes many crushers. These crushing machines have different functions, and complete the crushing operation together.
Thirdly, the screening and transporting system. The system screens the ore which are crushed by crushing machinery. In the compound sand and stone production line, sand and stone need to be separated, and the separated material needs to be transported to the respective site. The sand screening equipment used in this process is generally a Linear Vibrating Screen or other sand sieve machine.