He is the chief trade negotiator for China's accession to the WTO, has pushed the door of the WTO, and has become a witness to China's accession to the WTO with his own eyes and white hair; his name, the frequency of appearances in the Chinese media in 2001, in the slightest No less than any entertainment star; at the auto forum held three years after China’s accession to the WTO, he talked to him and once again conquered the media and the audience with his own insights. He is the Secretary-General of the Boao Forum for Asia, Long Yongtu, who took office last January.
“This is the first time I have participated in the Auto Forum since China’s accession to the WTO. For me, it is really filled with emotion.†This is the first sentence that Long Yongtu said after he stepped onto the podium.
At the “Guangzhou Huadu Automotive Industry Development Forum†held on April 12, Long Yongtu discussed his own insights into the Chinese auto industry with his consistent style of “words and thingsâ€. After the meetings and meetings, he also accepted interviews with reporters.
"Local industry is China's own industry"
Reporter: By July 1, 2006, China's auto vehicle tariff would have dropped to 25%. Many people in the auto industry have proposed to build our own independent brands, but now the brands of domestic companies cannot be compared with foreign countries. In what areas should China's auto industry make efforts? â€
Long Yongtu: Creating our own brand is important in the medium to long term, but I think that, in the short term, it is not necessary to pursue their brand too much. Because the formation of a brand has a process that is the result of a market promotion, it is the result of a gradual acceptance of the market. Like the previous years, our home appliances such as color TVs and refrigerators were all foreign brands. However, after our country’s production capacity went up, it naturally formed a Chinese brand. So, I don't think it is necessary to overemphasize my brand at this stage because branding is not the core thing.
In my opinion, the most important thing is the core independent property of the product. Whether the key parts are produced here or not, this is the most practical thing before you can talk about the brand. If you have your own intellectual property and you have the ability to produce key components, your own brand will naturally go up. However, China's auto industry has yet to reach this point. We also have a process of gradually nurturing the development of our own auto industry. We must step up our efforts in science and technology development, and then gradually establish our own brand or brand name.
Reporter: Do you think that China's auto industry should not own its own brand?
Long Yongtu: I think we should gradually go in this direction. However, as I mentioned just now, this process should be a gradual process. It is a matter of course. It cannot be decisive. It is not realistic enough to think of what it is.
Reporter: Is China Automotive's development of its own brand not mature enough?
Long Yongtu: I think we should go in this direction, but do not rush to achieve success.
Reporter: At present, there are a lot of foreign brands that are used to export auto parts in China. Will this affect the auto industry in China?
Long Yongtu: In the past few years, I have been promoting a viewpoint that whether it is the surname "outside" or the surname "middle", as long as it is produced in China, it is a corporate legal person in China. It pays taxes to the Chinese government. It To solve the employment of ordinary people in China, we should treat it as our own industry. In the past, we often talked about national industries. In fact, this is an outdated concept. Today, foreign countries generally talk about local industries. This includes both domestic and foreign investment companies. Therefore, we should change our concept and treat foreign companies investing in China with the right attitude.
Reporter: Does this mean that it is not China's own industry that does not matter?
Long Yongtu: I think that as long as it is produced in China, as long as it pays taxes to the Chinese government, as long as we employ Chinese workers, this is our own industry in China.
"China should become a big workshop for global factories"
Reporter: Do you think that the gap between China's auto parts and foreign countries is big? What are the shortcomings?
Long Yongtu: There is still a big gap between China's auto parts and components on the technical level, especially key components, compared with foreign countries. To shorten the gap between China's auto industry and foreign auto industry, we must first improve the level of some key, basic auto parts, so as to form the advantages of auto industry development and gain control of the initiative.
Reporter: Do you agree with "China will become a factory in the world"?
Long Yongtu: In the era of globalization, no country can become a world factory. It can be a workshop or several workshops in the world. Because in the era of globalization, no factory can be produced from the first part to the last part of the car, so this outdated factory concept must be changed.
I hope that China will become a big workshop in the global automotive industry, an important workshop, and connect to other countries in the world through the global production chain of multinational companies.
Reporter: How should China's auto industry join the global economy?
Long Yongtu: China’s auto industry should become part of every production chain and supply chain of all major auto makers and major auto brands in the world, so as to effectively participate in the global economic process and effectively obtain Great opportunities for global automotive industry transfer.
In the past, the export of China's auto industry was mainly the export of auto parts. From the 2003 point of view, more than 90% of China's auto and auto parts exports are auto parts. Therefore, the future of China's auto industry's exports is also component parts. The selection of such a development direction is of directional significance to the development of the Chinese automobile industry, including the Guangzhou and Huadu automobile industries.
WTO auto negotiation has three difficulties
Reporter: When China joined the World Trade Organization, what are the major difficulties in the negotiation of automobiles?
Long Yongtu: The difficulty in negotiating China's automobile industry lies in:
First, China has a high degree of protection for the automotive industry. This is reflected in the fact that when we began to enter negotiations on the automobile industry, the tariffs on Chinese cars were as high as 180% to 220%. Among the high-tariff industries in the world, this can be described as a typical case. At the time, Chinese autos also imposed the strictest quota system on imports. In this way, China has faced extremely serious difficulties in joining the WTO’s tariff negotiations and non-tariff negotiations.
Second, there were many restrictions on foreign investment in the Chinese automobile industry at that time, and many did not meet the conditions of the World Trade Organization. For example, at that time, there were many requirements for foreign investment in China’s auto industry: requirements on localization rates, requirements on foreign exchange balances, requirements on how many percentages of exports must be required, how many percentages of exports would receive corresponding tax benefits, etc. These are the violations of the rules of the World Trade Organization. In addition, there were strict restrictions on the production models at the time.
Third, the examination and approval of the centralization of the height of investment cars at that time. Only 30 million yuan worth of projects can be approved at the provincial level, which was later increased to 120 million yuan after negotiations. In addition, there are questions about bank and non-banking institutions providing credit to car consumers.
Only by introducing the world's major auto suppliers to China can foreign auto companies bring their most advanced technologies and the latest models to China, thus enabling Chinese autos to enter a completely new situation in attracting foreign investment. Judging from the current development trend of China's economy, China's auto industry has broad prospects.
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