w88 casino News Network (Institute of International EconomicsFeed)On December 6, 2023, the Institute of International Economics of the w88 casino released the "China Foreign Investment Development Report (2023)". The report focuses on foreign investment in China's automobile industry and comprehensively analyzes the evolution of foreign investment policies in the automobile industry, the effect of the automobile industry absorbing foreign investment, the role of foreign investment in the development of China's automobile industry, the development and benefits of foreign automobile enterprises, the competition pattern of China's automobile industry, and the prospects for foreign investment in the automobile industry.
The report believes that a relatively complete automobile industry chain has been formed, and it has become the world's largest automobile producer. Its international competitiveness has been continuously improved, and foreign investment has contributed indispensably. Foreign car companies have benefited greatly from China and have unleashed significant competitive effects and technological spillover effects. With the deep integration of the new generation of intelligent and connected technologies with the automotive industry, the low-carbon transformation and upgrading of the automotive industry is triggering a major change in the global automotive industry. Intelligence, connectivity, and low carbon will become the focus of competition between Chinese and foreign car companies. Relaxing restrictions on foreign investment access will improve foreign investment expectations. The world's major multinational automobile companies will step up their deployment in the Chinese automobile market and usher in a new era of joint ventures.
The concept of foreign investment has evolved from hesitation and caution to integrated development
The automobile industry's absorption of foreign investment has gradually changed from a relatively hesitant and cautious attitude in the early stage to a social consensus of acceptance and tolerance. From the early stageFrom "market for technology" and preferential policies to "joint hands" and "mutual benefit and win-win" at present, it has become the main theme. It has gone through the cooperation process from "market for technology" from the Chinese side to "technology for the market" from the foreign side. It not only reflects the changing role of foreign investment in the automobile industry, but also reflects the unique role of foreign investment in the development of China's automobile industry.
The layout of foreign investment has expanded from the coast to the central and western regions, and from complete vehicles to the entire industrial chain
From the initial OEM vehicle manufacturing by Sino-foreign joint ventures to the introduction of key parts and components to the upstream and downstream cooperation in the industrial chain, from technical processes to experience management to R&D and innovation cooperation, foreign-invested automobile enterprises have been deeply integrated into the entire production chain of China's automobile manufacturing, and foreign-invested enterprises have become an important part of China's automobile industry.
The market structure changes from dominance by foreign brands to the rise of domestic car companies
China’s automobile market has shifted from being dominated by foreign brands to the rise of domestic automobile companies. The market share of independent brands has increased, while the market share of some foreign brands has declined. Especially in the field of new energy vehicles, domestic automobile companies have become the targets of foreign investment competition in the new round of industrial reform.
Foreign car companies have benefited hugely from the Chinese market
Foreign-funded automobile companies not only have stable operating income growth, but average revenue is much higher than the global average, total profits continue to expand, average profits are rising steadily, and investment return rates are not only significantly higher than the industry average, but also higher than the average global investment return rate of major multinational automobile companies. The Chinese market has become an important source of global revenue for multinational automobile companies. The continued profitability of foreign-funded automobile companies means that major multinational automobile companies will still regard the Chinese market as an important investment area in their global layout.
Foreign investment has released obvious competitive effects and technological spillover effects, boosting the international competitiveness of the automobile industry
From the perspective of competition effect, the entry of foreign capital has broken the policy barriers of the automobile industry, formed a market pattern in which domestic and foreign-funded enterprises compete together, and has given rise to economies of scale. China's independent automobile brands have continued to grow and develop; market competition has intensified, and price reduction has become a common strategy for automobile companies. Consumer welfare has increased significantly, profit margins have steadily increased, and product diversification and technological innovation have been promoted. From the perspective of technology spillover effects, there are significant differences in the different stages of foreign investment: in the technology accumulation stage, foreign investment has significant technology spillover effects; while in the innovation and development stage, the technology spillover effects of foreign investment are no longer significant, indicating that China's own automobile brands pay more attention to independent innovation, thus gradually reducing their reliance on foreign investment technology.
Foreign capital will accelerate localization and open a new era of joint ventures
The Chinese automobile market will still be very attractive to foreign investment. In the future, continuing to invest in the Chinese automobile industry and seeking further integration and development with Chinese automobile companies will remain an important choice for major multinational automobile companies. With the full liberalization of foreign shareholding restrictions in my country's automobile industry and the implementation of new energy automobile industry policies, foreign automobile companies such as Mercedes-Benz, BMW, and Volkswagen have adjusted their strategies, increased investment in China, expanded R&D investment, promoted innovation cooperation, and proactively opened a new era of joint ventures, hoping to take the initiative in the new round of automobile industry changes.
Experts and scholars from the Development Research Center of the State Council, the Chinese Academy of Social Sciences, the China Institute of w88 Research of the Ministry of Commerce, the National Development and Reform Commission, Renmin University of China, Nankai University, Fujian Academy of Social Sciences and other units had a heated discussion on optimizing the business environment for foreign investment, stabilizing the quantity and quality of foreign investment, the impact of foreign investment on the automobile industry, and Sino-foreign joint ventures in the new energy field. People's Daily, Xinhua News Agency, China News Service, Guangming Daily, Economic Daily, China Daily, Economic Information Daily and other media attended the report conference.
