After more than two years of turbulence, China and the United States, the European Union, and Canada have finally had their disputes over auto parts. Not long ago, the World Trade Organisation Appellate Body ruled in Geneva that the United States, the European Union, and Canada sued China's auto parts import management measures. China violated the WTO rules; the ruling took effect within one month, and China must correct this practice within a time limit. . According to the report, China’s taxation of imported vehicles by more than 60% of imported parts and components constitutes discrimination against imported auto parts, which violates relevant trade rules. So, what does the result of this ruling mean to the Chinese auto industry? A few days ago, this newspaper, as a special program of CCTV's economic channel to participate in the cooperative media, “Strengthening Confidence and Promoting Developmentâ€, invited Yang Ruilong, Dean of the School of Economics of Renmin University of China, to discuss this issue. His opinion. Disputes between China and the United States, the European Union, and Canada on auto parts began in February 2005 with the "Measures for the Administration of Imports of Auto Parts That Constitute the Characteristics of Complete Vehicles". This approach stipulates that parts with the characteristics of a complete vehicle will be subject to an import tariff of 25% on the vehicle tax rate instead of a 10% import duty on components. The Chinese side stated that the measures were introduced to prevent foreign companies from tax evasion. However, in the face of the final ruling of the World Trade Organization, China can only accept it. According to the current regulations, if 60% of the spare parts of the vehicle are imported, China will impose tariffs on imported auto parts at the tax rate of the entire vehicle. The tax rate for imported vehicles is 25%, while the tax rate for auto parts is only 10%. Although domestic auto makers have long anticipated this result, they are still concerned that the multinational auto giants will further reduce the procurement of auto parts in China. In this regard, Yang Ruilong's view is that China should look at this issue from two aspects. The WTO believes that China's tariffs on auto parts hamper the adoption of imported auto parts by domestic automakers, which will reduce the employment opportunities offered by auto parts manufacturers in the United States, Canada, and other EU countries. The European and American countries complained to the WTO in 2006 that China imposed high tariffs on imported foreign parts that accounted for 60% or more of the vehicle price, disguisedly forcing Chinese-foreign joint ventures or Chinese automobile manufacturers to use Chinese-made auto parts, and declared that Foreign auto parts manufacturers will shift their production sites to China, causing workers in relevant industries in Europe and America to become unemployed. This final ruling has actually lowered the threshold for foreign cars imported into China. After the financial crisis, the U.S. GM and the German public faced a contraction in the auto industry after the overall demand decline. It is imperative to seek exports. After this adjustment, the tax difference between vehicles and parts was flattened and the autos went to the Chinese market. The corresponding tariffs on imports are declining. It should be said that it is good news for the foreign auto industry, and it is a pressure on the Chinese auto industry. Especially under the impact of the current world financial crisis, it will have an impact on the auto industry. This is one aspect. On the other hand, this result should be expected. Since China’s accession to the WTO, China has promised to follow the rules of the free market, follow the rules of the game, and participate in international competition. Although it feels somewhat unreasonable, we must adjust our mentality to meet the challenges and revitalize the Chinese automobile industry. This may be is the most important. Yang Ruilong believes that before this year, China promulgated the "Measures for the Administration of Imports of Auto Parts That Constitute the Characteristics of Complete Vehicles," designed to prevent lawbreakers from using the tax differences of vehicles and parts to evade Customs supervision, which is due to the need to combat illegal assembly. The tariff on imported vehicles in China is 25%, but the tariff on imported auto parts is only 10%. Therefore, many multinational auto companies took the opportunity to import large quantities of auto parts and then assembled and sold in China, disguisedly avoiding tariffs of at least 15%. Once China adjusts the plan, it will open the door for multinational car giants to take advantage of tax avoidance or tax evasion. Therefore, we should introduce relevant measures to strengthen supervision. In fact, in the automotive industry, the use of imported products or a large number of imported parts and components in the Chinese market to occupy a competitive advantage is an almost impossible task. Even in the case of zero tariffs, parts and products produced in high-cost countries will have higher prices in the Chinese market than most Chinese local products. Therefore, on the surface, this ruling reduces the cost of imported auto parts in China and poses a competitive threat to domestic suppliers. However, this ruling will not have too much negative impact on the development of the Chinese auto industry. Some experts pointed out that the use of advanced auto parts and components to be assembled into finished cars in China is limited to only a few premium cars. These high-end cars all belong to niche consumers and have little sales. They will not have too much impact on the Chinese auto industry. What's more, in order to reduce costs and increase efficiency, most auto companies in China have further increased their localization rate. Therefore, under the background of increasing localization rates, even if the enforcement of the ruling has little effect on Chinese auto parts companies. Enclosed Laser Marking Machine Enclosed Laser Marking Machine,Enclosed Fiber Laser,Enclosed Fiber Laser Marking Machine,Best Enclosed Fiber Laser Feiquan Laser Technology Wuxi Co., Ltd. , https://www.fq-lasers.com