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September 30, 2025

Lack of overall advantages. China's auto and parts exports are difficult to be optimistic.

In 2003, China's auto exports, including spare parts, totaled $400 million, while the export of auto parts reached $4.31 billion, marking increases of 64.3% and 32.1% respectively. These figures indicated a positive trend for the sector. However, during an interview at the "Expanded Automobile and Parts Export Seminar" organized by the Ministry of Commerce, the National Development and Reform Commission, the Jilin Provincial Government, and the Changchun Municipal Government, Vice Minister of Commerce Wei Jianguo expressed concerns about the future of China's auto parts exports. Wei pointed out that with the upcoming WTO accession, industries critical to China's economy would face significant changes and challenges. Many sectors, including automotive, would complete their tariff reductions and non-tariff concessions within five years, with some entering the end of their transition period by the end of 2003. This highlighted the urgency for Chinese companies to adapt and improve competitiveness. Despite the growth, China’s auto and auto parts exports in 2003 only amounted to $4.71 billion, accounting for just 0.4% of global auto trade and 1% of China’s total electromechanical exports. The industry still struggled with a fragmented, disorganized, low-quality, and small-scale structure. This situation had not been fundamentally improved yet. Wei outlined key opportunities and challenges. On the positive side, the global auto industry was undergoing restructuring, with many manufacturing sectors shifting to China. Additionally, Chinese auto parts were gradually moving from labor-intensive products to higher-value goods that met international standards. Many countries also showed optimism toward China's auto export potential. However, the main challenges remained: the lack of concentration in production, small scale, low-end product focus, and unclear export strategies. To address this, the Ministry of Commerce set specific goals. In the short term, they aimed to increase exports of high-tech and high-value-added products while expanding the foreign after-sales market. By 2005, the goal was to have more than 30% of the market covered by supporting products, with auto and parts exports reaching $15-20 billion. In the long run, the share of capital- and technology-intensive products was expected to rise. By 2010, the supporting market should exceed 60%, with tech- and capital-intensive products making up over 60% of the total. Auto and parts exports were projected to reach $70 billion, forming a strong and sustainable export base.

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