Loosely commented on the technical barriers of Chinese parts companies

Technical barriers are a category of non-tariff barriers. They are supported by technology. That is, when importing commodities, importing countries adopt laws, decrees, regulations, regulations, establish technical standards, certification systems, sanitary inspection and quarantine systems, and inspections. Procedures, as well as packaging, specifications, and labeling standards, raise the technical requirements for imported products, increase the difficulty of import, and finally achieve the goal of ensuring national security, protecting consumer interests, and maintaining balance of international payments.

In order to compete for the commanding heights of the market, after nearly 30 years of joint ventures with Chinese companies, barriers to the export of Chinese technology by foreign car makers have become loose. The increase in the technological level of Chinese local car companies and the increasingly fierce market competition have made foreign investors aware that China is no longer the emerging market for digesting what they claim to be “mature technology”.

A typical example nowadays is that foreign investors are scrambling to export automatic transmission technology to China. Mitsubishi Motors has taken a step ahead of the domestic DCT dual clutch transmissions that BorgWarner is proud of.

On June 26, Mitsubishi Motors Corporation signed a license agreement for its transmission technology with Harbin Dongan Automobile Engine Manufacturing Co., Ltd., located in Harbin, Heilongjiang. Mitsubishi Motors will begin production of four-speed and five-speed automatic transmissions in Harbin Dongan Automobile Engine Manufacturing Co., Ltd., a joint venture company in China in 2009.

The four-speed and five-speed automatic transmissions exported to China by Mitsubishi Motors are not "out of date" in terms of technological content. In a mid-to-high-end sedan such as the Toyota Camry, the four-speed automatic transmission is still equipped. Not to mention the fact that local auto companies such as FAW, Geely, and Chery invested heavily in the development of automatic transmissions. However, none of them have been successfully developed and put into production in batches.

According to an insider of international parts giant BorgWarner, BorgWarner plans to introduce the most advanced DCT (Double Clutch Transmission) into production in China within two years. However, under the stimulation of rivals such as Mitsubishi, in order to win the competition in the competition, BorgWarner will only speed up and will not slow down the pace of its export technology to China.

In fact, in the early years, the foreign investment in China that followed the “Iron Curtain Policy” on technology exports has loosened with the depth of market competition.

The Volkswagen's most advanced 1.4T engine production line has already settled in Dalian and is about to be made domestically. Toyota's Prius hybrid technology will also be equipped with a Pentium hybrid sedans. GM plans to introduce its unique fuel cell vehicle E Flex system to China in 2010, as well as Honda. Efforts to support Guangben to build its own car platform......

Experts believe that good foreign investment is still a huge market opportunity for China. Local companies should seize the opportunity to use the second wave of “technology transfer” in foreign investment to realize their leap-forward development at the technological level.

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