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Automobile parts made in China should take steps toward Chinese innovation.


"Made in China, Global Cooperation" has become the central theme of a 30-second commercial aired this week by CNN in the Asian market. The content promotes the idea that, in the context of globalization, products labeled 'Made in China' are actually the result of collaborative division of labor and shared profits among various trade entities worldwide. Undoubtedly, this advertisement also helps to rebuild and strengthen the reputation of 'Made in China' in the global market. 

The auto parts industry, as an important segment of 'Made in China,' is naturally not overlooked.

汽车零部件中国制造应迈步走入中国创造

China-made auto parts are facing multiple challengesIn fact, "China's auto parts manufacturing industry is already very strong, capable of meeting the needs of almost all manufacturers," said Sergey Tsyrikov, General Manager of the Russian 'Automobile Statistics' consulting company, in an interview, affirming the importance of Chinese parts manufacturers to the global market.Especially after the economic crisis, many domestic Chinese parts manufacturers took advantage of the downturn in foreign markets to improve product structure, optimize process management, invest more effort in internal controls than before, and achieved certain gains. For example, Wan'an Technology's newly constructed plant was officially completed, achieving effective cost control over raw materials; Jin Qilin Group completed the construction of its second brake pad production base, which is expected to achieve an annual production and sales capacity of 50 million sets.When China-made parts products are popular worldwide, a harsh reality confronts us: more and more "China-made" parts are appearing in the form of raw or semi-finished products, and the greater profit margins are being captured by foreign companies. In the field of auto parts, "Made in China" has lost the value it should have possessed.

   It is evident that in order to move from 'Made in China' to 'Created in China,' component enterprises still have a long way to go. As Dong Jianping stated in an interview with HC360, the urgent task is to improve the structure of the components industry and enhance enterprises' creativity and technological level. Technology is the core competitiveness of an enterprise, and its strength depends on whether it occupies the commanding heights of technology. Over the past 30 years since the reform and opening-up, China's auto parts industry has introduced advanced foreign technologies—including product, process, and management technologies—through purchasing technology licenses, establishing collaborations, joint ventures, and wholly-owned enterprises. These technologies have provided support and assurance for the rapid development of China's automobile industry.However, we should also recognize that foreign-funded enterprises have a high level of overall management, control the technological high ground, and occupy the high-end product market. According to statistics, by 2007, over 40% of the output and sales in the components industry were generated by foreign-funded enterprises, which only accounted for 17% of the total number of enterprises. Chinese-funded component enterprises are small in scale, produce products with low technological added value, have not yet mastered advanced core technologies, and have significant management gaps, placing them at risk of marginalization and staying at the low end. Therefore, enhancing innovation capability is particularly important for Chinese-funded component enterprises.

  "Made in China" has already been recognized globally; however, "Created in China" still requires more investment. On the basis of 'manufacturing,' achieving effective 'innovation' is the path that Chinese automotive parts companies must inevitably take. Innovation must be built on their own technological accumulation. A company's innovation capability does not arise out of nowhere—it relies on long-term accumulation and summarization of experience, and this accumulation depends on diligent, sustained experimentation and research. 

In the past, we could introduce technology from abroad, but now some key technologies are strictly controlled overseas, and the path of relying on imported technology for the long term is not feasible. Purchasing advanced foreign technology can only save time, shorten the gap with others, and achieve interim leaps, but it is difficult to surpass others. Only by mastering the high ground of technology and achieving technological leaps can genuine breakthroughs be made. Therefore, regardless of whether technology is introduced from abroad, we must conduct arduous experimental research ourselves, build our own accumulation—without accumulation, there is no innovation—and ultimately, surpassing others relies on our own innovation capability.