Automobile Association with FAW / Dongfeng against equity ratio is now open

Posted on 7/23/2016 3:14:53 PM

Recently, the "50 per cent foreign ownership cap" on the automotive industry, more and more foreign rumors, Development and Reform Commission, Ministry of Industry, Commerce and other various government departments were also mentioned on various occasions, "whether release equity ratio "and so on. Since the liberalization of the joint venture shares than if a significant and direct impact on the development of the automotive industry will, equity ratio problems caused great concern in the automotive industry, it has become the focus of the automotive industry one of the most recent concern.
July 22 morning, the China Association of Automobile Manufacturers in Beijing hosted a symposium on issues related to equity ratio of the automotive industry. The representative of China Association of Automobile Manufacturers, FAW Group, Dongfeng Group, Changan Group, Beijing Automotive Group, China Automotive Engineering Research Institute and the China Automotive Technology and Research Center and other units attended the meeting and delivered speeches respectively, unequivocally opposed to hastily release the joint venture equity ratio.
At the meeting, China Association of Automobile Manufacturers Dong Yang, executive vice president, said the fight equity ratio was interests of the game, it is to release the equity ratio of foreign direct concessions on benefits. Equity ratio will also release the country lose the initiative for China's auto industry, automobile manufacturing industry is not a general, but to support the national economic transformation and upgrading of strategic industries, release equity ratio will affect our national security, economy and other core interests of developing countries.
In addition, he also believes that the liberalization of equity ratio is not conducive to the development of Chinese brands, Chinese brand will lose the last protective barrier, and now stocks over policy making can have the opportunity to venture capital, human resources and other forms of support for development of independent brands. If you release equity ratio, the face of the whole foreign, we do not even have the opportunity to discuss with the automobile industry, "localization direction" matters of principle.
Therefore, Dong Yang recommend delaying the release equity ratio, even if the release, at least need to defer eight years, to various levels of proficiency, to open sub-areas.
China Automobile Industry Association Vice President and Secretary General Wushao Ming said that China's auto market has been liberalized, in fact, we need to think about who is now forcing us to continue to release equity ratio? Lessons from the Chinese auto parts after the opening we need to reflect on the path of development in Japan and South Korea's automobile industry is worth analysis and study. Wushao Ming believes that Chinese brands are in foster growth opportunities, but also in the Internet era, the car will be another Internet terminal, the future development of the automobile industry will involve a series of national security and other fields.
FAW: open foreign equity restrictions will further squeeze the space for development of the national automotive industry, the development of independent brands fatal blow. In addition, the liberalization of foreign equity restrictions will allow us can not grasp and control the industry's core technology, resulting in industry "hollowing out", the country's economic development lose some control; state-owned economy will have an impact, the overall relationship between social stability maintenance; national capital and industrial transformation and upgrading and transformation and upgrading of enterprises and local enterprises to research institutions require a long period of time to develop. Control of the core technology of automobile enterprises also take longer to meet national security needs. Autonomous vehicle enterprise information security and information technology capacity building also need to nurture and develop. So FAW Group hope that the state can try to fight for the nation's automobile industry protection, delaying the release rhythm.
DFG: equity ratio after the opening of our joint venture will become a foundry, our profits will be further reduced. Now the overall development of its own brand to be successful, is now in a critical period of development, need a stable policy environment, the need to develop and nurture their leave time, if released, brand development process will be interrupted, so Dongfeng Group in principle agreed to release the shares than if should release delay time, there must be gradually liberalized echelon. In addition, because China's auto overcapacity problem has been highlighted, Dongfeng resolutely oppose liberalization "third." Some companies recommend release, from small local interests, in fact, than if the shares released, those companies will lose the buffer, will face direct competition TNCs.
Changan Group: China brand is the core strength of China's auto industry development, the development of China's auto industry does not exist the problem of insufficient power, but needs time to develop, and if open foreign equity restrictions, Chang R & D investment will not be sustained. Therefore, Changan Group recommended that the critical period of brand development in the next three to five years, China, to develop their own brands 2,3 House, the formation of international competitiveness, and the establishment of China's auto industry "leader special fund" at the national level, to encourage China continued development of the automotive industry.
BAIC: open discussion than shares, you have to consider that we still do not continue to develop autonomous cars? But also do not get the right to issue a joint venture? In addition, we also need to consider, if open equity ratio, we can exchange for what kind of interest? Beijing Automotive Group believes enterprises with foreign capital and technology and other advantages easily into our markets, and we have to "go out" is not easy, so after the release, not the interests of both to obtain peer.
China Automotive Engineering Research Institute: the joint venture for the development of independent enterprises now contribute a great deal of profit, release equity ratio to carefully consider the impact on the automotive industry and the industry. Our own brand is the real development started in 2000, and the accumulation of automotive technology and product needs of the process, now emerging good development trend, if we let go, have a great impact on development of independent brands. China Automotive Technology and Research Center, said shares than open more harm than good, to objectively evaluate the effect of the auto industry using foreign capital, to consider the impact of SOE reform.

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