The development of the auto parts industry is particularly important for the quality of vehicles and innovation in China’s own brand. However, the closed development pattern has restricted the development of strategic partnership between the vehicle enterprises and the auto parts companies. In order to keep up with the pace of automobile industry, the auto parts industry should be further developed. The following is the conversation between a reporter and the deputy secretary-general of China Association of Automobile Manufacturers (CAAM).
Reporter: In recent years, China’s auto parts enterprises have made significant progress, but they still can not catch up with the pace of companies which produce vehicles. What are the reasons?
Dong Jianping: For a long period, products of domestic components industries are low-end. Generally, those joint ventures of vehicle manufacturers do not use domestic components because they are not confident in the quality of these products. With the opening up of the automotive market, there are restrictions on the number of vehicle enterprises. However, there is no restriction on the auto parts companies. As a result, many foreign enterprises invest and build factories in China. Their mergers and acquisitions have much impact on the domestic