Different from the booming domestic auto market this year, the domestic spare parts industry is facing great difficulties: exports have fallen sharply; in the domestic market, it has also fallen into a situation surrounded by foreign capital. The reporter learned that at present, sales of most parts and components companies in China are below 100 million yuan, and it is difficult to form scale advantages for foreign-funded enterprises whose sales are tens of billions of dollars. Industry insiders pointed out that domestic parts and components companies through the merger and restructuring to form large-scale enterprise groups to participate in international competition is the best way out. It is understood that China's relevant policies only stipulate that in the entire vehicle joint venture, the proportion of China’s shares in the joint venture shall not be less than 50%, and foreign-invested parts and components companies shall not have the limit of the proportion of shares. This has led Bosch, Denso, Delphi, and modern MOBIS to occupy an important share of China's auto parts market. Industry insiders pointed out that this will create difficulties for the definition of supporting targets for relevant industrial policies. People from the National Development and Reform Commission said that the introduction of policies to encourage the merger and reorganization of domestic parts and components industry is a very complicated task. Mergers and reorganizations are the trend This reporter learned that before the country introduced specific policies to support the merger and reorganization of parts and components companies, some domestic automobile parts and components companies have taken the lead in starting the merger and reorganization efforts. “At present, the merger and reorganization of parts and components companies is indeed a general trend,†Wang Peijie, deputy general manager of Shanghai Daily-Yue Jie Auto Electric Co., Ltd. said in an interview. “We are trying to merge and restructure, and we hope to get the national policy and Car manufacturer support." Recently, Beijing Jingxi Heavy Industry Co., Ltd. has obtained the final approval for the application for the acquisition of the brake and suspension systems and related assets of the Delphi Corporation. Zeng Qinghong, general manager of Guangzhou Automobile Group, believes that domestic auto parts companies will have a new merger and restructuring climax. He said that the importance of parts and components companies to vehicle manufacturers is self-evident, and the expansion and enhancement of parts and components companies will promote the sound development of automobile manufacturers. Policy support objects difficult to define The "Auto Industry Adjustment and Revitalization Plan" issued this year clearly stated that: Supporting large-scale automobile enterprise groups to carry out mergers and reorganizations, and supporting key auto parts enterprises to expand their scale through mergers and acquisitions. Industry insiders believe that obtaining advanced foreign technology to improve research and development is an important driving force for the merger and reorganization of parts and components companies. If they participate in international competition, foreign-funded enterprises can also obtain overseas sales channels and customers, which are all domestic cars. The short-cut to improve the overall competitiveness of parts and components companies, if the national industrial policy level can give more detailed support for this, will accelerate the process of merger and reorganization of domestic parts and components companies. “National related industrial policy support is only a macro-level guide at present, and for auto parts companies, mergers and reorganizations are still “not quite thirst-quenchingâ€,†internal sources at Fu'ao Auto Parts Co., Ltd. told reporters. Xu Changming, director of the Information Resources Development Department of the State Information Center, said recently that “parts-mergers’ mergers and reorganizations are more urgent than complete vehicle companies. Chinese auto parts companies need to be bigger before they become stronger, and the government should further promote the domestic parts and components industry. Mergers and reorganizations and necessary policy support." Fu Yuwu, deputy chairman and secretary general of the China Association of Automobile Industry Engineering, also stated that at the national policy level, key support should be given to parts and components companies. In 2004, the National Development and Reform Commission promulgated the new “Automobile Industry Development Policyâ€, and the entire vehicle project still maintains the rigid requirement that the proportion of the joint venture’s Chinese share shall not be less than 50%. There is no limit to the proportion of foreign investment in spare parts. This has led Bosch, Denso, Delphi, and modern MOBIS to occupy an important share of China's auto parts market. Analysts pointed out that the state's policy support for the merger and reorganization of parts and components industry faces real operational difficulties. Because there is no limit on the proportion of foreign shares, the national industrial policy will be difficult to define the objects to be supported. “There is a difference in the share ownership ratio between the parts and components industry and the entire vehicle industry. There is no relevant policy limit for the ratio of foreign-invested shares in the parts and components industry, so the scope of support and the nature of the company are not well defined.†Deputy Secretary, Department of Industrial Coordination, National Development and Reform Commission In an interview with reporters, the director-general Chen Jianguo pointed out that whether or not the introduction of a policy to encourage the merger and reorganization of the domestic parts and components industry is a very complicated task. Mini Handheld Vacuum Sealer,Handheld Vacuum Sealer,Vacuum Sealer Machine,Food Saver Vacuum Sealer Zhongshan Lianwei Electrical Technology Co., Ltd. , https://www.zslwwaterpump.com