"Summarizing the automobile's entry into the WTO is a very large project." Chen Lin, Commercial Counsellor of the Department of Foreign Investment of the Ministry of Commerce, told the "China Business" reporter. At the beginning of the accession to the WTO, almost everyone believed that the accession to the WTO would be a nightmare for the Chinese auto industry and that Chinese cars would be completely destroyed in the near future.

Ten years later, the Chinese auto industry has become the world champion in production and sales. In 2010, the total import and export trade volume of China's auto products reached US$108.531 billion, 19.4 times the total volume of imports and exports in 2001, of which exports were US$51.837 billion, which was exported in 2001. 33.5 times.

“Worst prejudgment, the best result. At the time of joining the WTO, everyone was most worried about the auto industry’s premature death. It did not expect it to be the best-growing industry under pressure,” said Chen Jianguo, deputy director of the Industrial Coordination Department of the National Development and Reform Commission.

Heavy pressure on the WTO At the time of the WTO negotiations, the production and sales scale of the Chinese auto market was only 2 million vehicles. In addition to the Red Flag, there were no well-known independent brand passenger cars. Most of the auto market was firmly entrenched in the joint venture. If the protection of tariffs is lost, SMEs in the Chinese automotive industry face great challenges. After all, whether it is technology or brand, Chinese cars are in their infancy, and they do not compete with multinational auto companies. Joining the WTO is equivalent to putting a baby in an unprotected world. How does it complete cruel self-growth?

Part of the commitments of China Automotive's WTO accession include the elimination of the restrictions on foreign ownership of engine joint ventures that cannot exceed 50%, which means that China has surrendered the control of upstream components in its entirety, and foreign companies can independently complete the construction of their own industrial chain, In the upstream of the industrial chain, China has lost its ability to restrain itself. Moreover, because parts and components can be wholly foreign-owned, China also loses control over the auto aftermarket.

In addition to losing the wand of the joint venture's upstream and aftermarket, China must also open its doors to imported cars: Car tariffs have been declining year after year from November 10, 2002, to 25% by July 2006. The tariff will be reduced from around 25% to 10% in July 2006.

While significantly reducing vehicle tariffs, the government must abolish the previous quota restrictions on the number of imported cars, and auto companies can export automobiles to China indefinitely. In addition, vehicles manufactured by Chinese joint ventures (at the time, China's own brands were only Hongqi, Jiefang, Dongfeng, etc.) were also banned from exporting.

“No technology, no brand is tantamount to the absence of weapons. Nothing has to compete with the large number of enemy forces armed with the most advanced weapons. How do you see that the chances for the national auto industry to survive are very slim.” China Automobile Industry Association Tangible Automobile Branch President Hui Hui told reporters.

The rise of independent brands but the Chinese auto industry unexpectedly survived and developed rapidly.

"In the final analysis, the reason why the Chinese automobile has not died out but gradually formed the scale is: the Chinese people are difficult to achieve results under the protection of the government, but in the critical moment of cruel death and death, but can play the greatest potential." Chen Jianguo said. “After joining the WTO, private enterprises and local auto companies that were originally impossible to produce results have gradually emerged and become the new force for the Chinese national automobile industry.”

For a long time before China's accession to the WTO, only a few large state-owned enterprises in China had obtained automobile production qualifications. However, after China's accession to the WTO in 2001, the Chinese government lifted restrictions on foreign investment and non-governmental enterprises' entry into the car production sector. This brought a number of independent brands to the stage of history.

Chery Automobile was registered in 1997, but it has achieved great development after its entry into the WTO. In that year, Anhui “Chery” launched the entire vehicle manufacturing project that was not approved by the state. It started in 1997 and was completed in 2000. It invested nearly RMB 1.7 billion. However, because there was no product “life permit”, the Chery sedan could not be sold in the national market. Under the coordination of the relevant ministries and commissions of the country and the governments of Shanghai and Anhui, SAIC acquired 20% of Chery’s shares at the end of 2000 and included Chery in the SAIC Group. The cars they produced entered the national product catalog and began to sell throughout the country.

After China's accession to the WTO, Chery and SAIC began negotiations for a three-year period with the opening of their vehicles. Finally, they separated from SAIC and established Chery Automobile Co., Ltd., and independently manufactured and developed several models of their own brands. Become a banner of China's own brand.

For a long period of time, Chinese auto companies have used retrograde R&D to build cars, that is, to imitate foreign brands as a starting point. Chery and Geely launched the first car, which is very similar to a car of a multinational corporation. However, there was no capital accumulation at the time and there was no accumulation of technology. Reverse R & D seems to be a road that has to be chosen.

“The accession to the WTO has provided us with opportunities. The success of the first car QQ has accumulated the first pot of gold for Chery. Subsequently, we have a large number of models that have been successful. In the future, Chery must become a technology-oriented company.” Chery Automobile Yin Tongyue, chairman of the group, stated that "Chery aims to maintain the leading edge of the automotive industry in two major technology areas: product technology and manufacturing technology."

To this end, Chery invested in the Chery Automotive Testing Technology Center, which consists of a total of 10 experiments including a collision laboratory, a powertrain laboratory, an emissions laboratory, a wind tunnel laboratory, a durable laboratory, and 2 parts laboratories. room.

Great Wall Motor is also an independent brand enterprise that is praised by Chen Jianguo, deputy director of the Industrial Coordination Department of the National Development and Reform Commission. “Great Wall Motors has been at the forefront of domestic independent brands in capital operation, independent research and development, and internationalization,” said Chen Jianguo.