Why should the United States keep a close eye on China's auto parts products?

In recent years, China’s auto parts industry has frequently been sanctioned by the United States. As the general election approached, the United States revisited it again. Related parties revealed that the United States is considering taking countermeasures against auto parts imported from China. Industry insiders pointed out that China’s auto parts and components are far from being a threat to the U.S. market, regardless of product technology or competitiveness. The reason for its frequent occurrence is that relying on revitalizing the manufacturing industry to promote economic recovery, auto parts and components are among them. The leading industry.

As the election approached, the U.S. Steel Workers’ Union and related groups continued to pressure President Obama to require the government to take action to deal with “Made in China” products destined for the United States. Recently, the General Counsel of the U.S. Trade Representative Office stated that the U.S. is considering taking countermeasures against auto parts imported from China and paying close attention to other issues in Sino-U.S. auto trade .

This is the third time since 2012 that the United States has accused China of selling auto parts products to the United States. Insiders pointed out that the reason why China's auto parts have repeatedly become the "target" of the United States is that the US economic recovery depends on manufacturing, and auto parts and components are among the leading industries.

Parts "threat theory" is an empty talk

According to U.S. media reports, relevant groups will lobby the U.S. government to resort to China’s subsidy policy on the auto industry to the World Trade Organization, or the U.S. Department of Commerce will launch a “double anti-dumping” (anti-dumping and countervailing) investigation and impose punitive tariffs.

The relevant person in charge of the Ministry of Commerce of China told this reporter that at present, the United States has not disclosed more details, including product types, specific countermeasures, etc., but will pay attention to this matter.

In recent years, the U.S. has repeatedly launched attacks on China's auto parts industry.

On January 31, the U.S. manufacturing industry union and Senator Brown and other lawmakers held a press conference accusing China of subsidies to the auto industry and damaging U.S.-related industries, and calling for the government to initiate the launch of auto parts, electronic equipment and tires and other parts and components. A lot of "double reverse" investigations.

On March 16th, nearly 200 U.S. Congressmen jointly issued an appeal to Obama, claiming that China’s auto parts and components have “predatory” pricing behavior. The U.S. auto parts industry has been seriously threatened and wrote a letter proposing that the U.S. government take drastic measures against it. system. “This industry has always encountered this situation.” The head of the China Automotive Industry Association’s Parts Department told this reporter that due to the reform and opening up and accession to the WTO, the increase in China’s exports of auto parts products has naturally caused the United States and other developed countries to be vigilant. “How many of these products exported to the United States are produced by local Chinese companies? And, in terms of product technology or competitiveness, Chinese auto parts and components are still far from any threat to the US market.” Automotive Industry Review Zhang Zhiyong said.

In the 1980s, the United States had also taken similar actions against the Japanese automobile industry. However, compared with the friction between China and the United States in this product, Japanese automobiles did impact on related industries in the United States.

According to Zhang Zhiyong, after the outbreak of the first oil crisis, Japanese cars had a large increase in global market share because of their low fuel consumption, and their exports to the United States were also increasing. Some large US car companies suffered huge losses. The U.S. government then forced the Japanese government to implement a "voluntary export restriction" policy that Japan must impose a maximum amount of export restrictions on its cars.

"The Japanese auto industry is indeed very strong. Its competitiveness has threatened the US industry. It is different from our current situation. China's auto parts manufacturing is still lagging behind. This is also the main reason behind China's vehicle manufacturing lagging behind." Say.

"China's auto parts exported to the United States are mostly low-end products such as steel wheels and have low profits," said a steel wheel manufacturer.

Although China’s auto parts exports have been repeatedly criticized by the United States, it is ironic that on April 17, 2012, the US International Trade Commission finalized the “double reverse” case of Chinese steel wheels to the United States, arguing that the Chinese steel wheels did not Substantial damage or threat to U.S. related industries.

Why is the auto parts industry always?

As for why the United States has repeatedly said that it uses Chinese auto parts, Li Yuheng, a senior research fellow at China Investment Consulting, told reporters that the industry is an important "straw" for the recovery of the American economy.

“The U.S. economy is recovering slowly and the unemployment rate remains high. The U.S. government has adopted stimulus policies to actively develop the manufacturing industry. It has led the auto parts industry and other industries as the leader to drive the economic recovery; at the same time, China’s low-cost auto parts have caused greater impact on the U.S. market. The impact has seriously affected the development of this industry."

A US automotive research center found that auto parts, maintenance and service are one of the main factors driving the U.S. economy. According to the statistics of the center, the US auto industry contributes more than 735 billion U.S. dollars in revenue each year, of which 173 billion U.S. dollars are spent on spare parts manufacturing, sales, and repairs and services.

According to U.S. media reports, the auto parts industry has made outstanding contributions to the U.S. employment rate. According to statistics, the jobs provided by this industry account for 75% of the entire US automotive industry.

On the eve of the US presidential election, "employment" is undoubtedly the best political card. According to industry insiders, all party parties will adopt some radical measures to increase their influence in the election year for the sake of the interest dispute. Making a fuss about auto parts, an important industry for the United States, may be a multiplier.

“Members in order to be able to influence voters to vote for their parties, will take various measures to attract the eyes of voters, including through the protection of trade to protect the interests of domestic industrial workers posture, so the political significance of this move is greater than economic significance.” Zhang Zhiyong said.

It is understood that in this US counter-measurement plan, a total of 188 members of the National Congress of the Midwestern State of Industry, such as Ohio and Michigan, also jointly wrote a letter to the government. The support of these states is crucial to Obama’s re-election.

However, Zhang Zhiyong stated that the loss of employment in the US automobile industry began when the first wave of shifts occurred in the last century. At that time, the heavy chemical industry shifted from developed countries to developing countries.

“This shift is in line with the overall interests of the developed countries, but it will inevitably cause some loss of benefits, such as the decline in the employment rate of related industries in the country. Certain US Congressmen are obviously nitpicking about the interests of a particular industry, and are pursuing major trends. It also broke away from the background of the entire international economic development at that time,” said Zhang Zhiyong.

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