What's New in the New Automobile Industry Development Policy?


As an important policy guiding the sustained and healthy development of the automotive industry, the formulation and publication of the new "Automotive Industry Development Policy" has attracted widespread attention from people both inside and outside the industry. The reporter specifically interviewed the relevant person in charge of the National Development and Reform Commission. Q: In 1994, the State Council had issued the "Auto Industry Industrial Policy". Why did we need to formulate a new "Auto Industry Development Policy"? Answer: China's auto industry has made considerable progress in recent years. In 1994, the "Auto Industry Industrial Policy" contributed. At present, there have been new changes in the international competition landscape and competitive trends in the auto industry. First, global large-scale mergers and acquisitions have led to strong alliances, which has led to further expansion of the company's scale and marked increase in market concentration. Second, the pace of technological innovation has accelerated. The proportion of information technology products is getting higher and higher. New drivers of low emissions and new fuel vehicles have been put into production one after another. The proportion of new materials and recyclable materials has gradually increased. Electronic information technology has changed the traditional organization and marketing of auto production. The contradiction between cars, roads, environment and energy has gradually become more acute after China’s step-by-step automobile society. The acceptance of social use environment has become the key to the long-term, sustainable and healthy development of China's auto industry. In the face of new contradictions and problems, we must have a policy that is innovative, forward-looking, scientific, and instructive to the development of China's auto industry. The development of a new "automotive industry development policy" is also a need to speed up the legal process of automotive product management. The automobile industry is a pillar industry for the development of the national economy. The use of automobiles involves millions of consumers and affects the interests of every citizen in society. Therefore, the life cycle management of automobile production, manufacturing, sales, use, and end-of-life involves multiple government departments and is a complex system project. However, in the process of transition from the planned economy to the socialist market economy, the Chinese government lacked the necessary laws and regulations on the legal management of automotive products. In this process, the development policy of the automobile industry is linked to the following: on the one hand, it guides the development of the enterprise; on the other hand, it can guide the relevant government departments to formulate the necessary rules and regulations to carry out legalized management. In addition, after China’s accession to the WTO, it promised to gradually open up the auto market, reduce auto import tariffs year by year, increase import quotas, and remove quotas in 2004. The auto industry is facing more severe tests. The introduction of the “Auto Industry Industrial Policy” in 1994 has been unable to adapt to the changing needs of the situation. Some of the contents are inconsistent with certain WTO rules. China has promised to amend the WTO when it joins the WTO. Therefore, by formulating new policies for the development of the automobile industry, we must honor our commitments and, at the same time, consider comprehensively the changes in the international and domestic environment, and coordinate the development of the automobile industry with the automobile consumption environment to propose development strategies. Q: Compared with the “Auto Industry Industrial Policy” of 1994, what are the new ideas of the new industrial policy? A: The new industrial policy not only reflects the coherence of the policy, but also reflects the requirement of advancing with the times. Compared with the “Auto Industry Industrial Policy” of 1994, the new ideas of the new industrial policy are mainly reflected in the following seven aspects: First, the content that is inconsistent with the WTO rules and China’s promise to join the WTO has been cancelled, such as the cancellation of foreign exchange balance, Localization ratio and export performance requirements. The second is to significantly reduce administrative approvals, let go of the release, and the management of the management will rely on regulations and technical standards to guide the healthy development of the industry. The third is to propose a brand strategy, encourage the development of products with independent intellectual property rights, and define a clear policy orientation for auto industry development. The fourth is to guide the existing automobile manufacturing enterprises to establish an honest and reorganization and to promote the domestic auto enterprise groups to become bigger and stronger. The fifth is to require auto manufacturers to attach importance to establishing the Jingpai sales and service system and eliminate consumer worries. Sixth, guide and encourage the development of energy-saving and environmentally friendly vehicles and new fuel vehicles. Seventh, it provides guidance on creating a better consumer environment. Q: What principles have been followed in formulating the new "Automobile Industry Development Policy?" A: First, the combination of openness and independent development. Under the trend of globalization of the international automobile industry, the development of China's auto industry must further implement the principle of opening to the outside world. The opening up to the outside world can be achieved through the establishment of new Sino-foreign joint ventures and the formation of enterprise groups with internationally renowned automobile companies, extensive international cooperation and technology introduction, and special emphasis on the use of international resources, the development of products with independent intellectual property rights, and the implementation of brand management strategies. The second is to expand the autonomy of enterprise decision-making and strengthen the combination of macro-control. The reform of auto investment project approval management measures has been adopted. Existing auto manufacturers have developed independent products such as the development of new products of the same category, expansion of production scale, and investment in motorcycles and auto parts. Newly-built automobile complete vehicles and engine production enterprises should still be approved by the government. The purpose is to reorganize the large number of auto manufacturing companies nowadays and make them bigger and stronger; appropriately control the new auto vehicle production enterprises and improve the access threshold. This policy will not prevent automobile manufacturers from fully competing, and it will help curb the further development of the chaotic situation in the current auto industry. The self-produced automobile sales system independently established by the enterprise shall operate within the market management rules formulated by the state; the development of auto parts shall be guided by the domestic and foreign market demands and shall be self-developed and fully competitive. The State shall create a policy environment to support China. The development of auto parts. The third is the combination of domestic and international market development. With the addition of the WTO, the domestic market has gradually opened up to the outside world and market competition has become internationalized. Therefore, it is inevitable that China's auto industry is going international. Encourage advantageous products to enter the international market, introduce foreign superior products, and achieve complementary import and export. One of the goals of the policy is to increase the export of auto parts and at the same time pay attention to expanding the export of whole vehicles. The fourth is to encourage the development of the automobile manufacturing industry and promote the localization of manufacturing products by improving the criteria for compliance and corresponding taxation measures. The relevant provisions stipulate the identification of the characteristics of the vehicle, that is, the import of the main parts and components of the assembled vehicle shall be regarded as the import of the whole vehicle, and tax shall be paid according to the tax rate of the whole vehicle. This is conducive to promoting the healthy development of the automotive industry, avoiding evasion of tariffs, and at the same time avoiding that auto manufacturers are only keen on product assembly. The fifth is to honor China’s commitment to join the World Trade Organization. The new policy pays attention to the commitments in paragraphs 203-207 of the "Protocol of Entry." When the introduction of the new policy, the original "Auto Industry Industrial Policy" ceased to be implemented. Sixth, the principle of sustainable development. The technical policy puts forward a series of requirements such as the development of new types of power automobiles, the development of new types of vehicle fuels and the production of new fuel vehicles, and the improvement of the fuel economy of automobiles, which will prompt automobile manufacturers to produce fuel-efficient vehicles, increase fuel efficiency of automobiles, and strive to reduce energy consumption. Consumption, reduce environmental pollution. Q: How will the implementation of the new "Automotive Industry Development Policy" be implemented? A: In order to implement the principles and requirements set forth in the new "Automotive Industry Development Policy," the relevant departments must also formulate relevant management rules and regulations. . For example, we must also enact the “Administrative Regulations for the Approval of Road Motor Vehicle Production Enterprises and Product Approved Personnel” and the “Management Regulations for the Vehicle Characteristics of Imported Auto Parts Production Vehicles” and so on. When the time comes, the “Road Motor Vehicle Management Regulations” will be issued. 》

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