On December 17, 2021, the National Development and Reform Commission officially issued the Special Administrative Measures for Foreign Investment Access (Negative List) (2021 Edition) and the Special Administrative Measures for Foreign Investment Access in Pilot Free Trade Zones (Negative List) (2021 Edition). The new policy will be implemented on January 1, 2022, compared with the old version, the 2021 version of the negative list of foreign investment access in the national and pilot free trade zones has been further reduced to 31 articles and 27 articles, of which the relevant content of the automobile manufacturing industry has attracted the attention of the public, the new policy will cancel the restriction on foreign ownership in passenger car manufacturing within five years, and relax the restriction that the same foreign investor can only establish two joint venture companies.
When the editor saw the news, he was not surprised, but there was a feeling that this day had finally come. After all, the state's attitude towards joint venture car companies is there, and the joint venture car companies with strong characteristics of the times are only a staged product derived from the protection of the fledgling Chinese automobile industry.
Nowadays, like the Great Wall, Geely, BYD and other independent car companies have seized the opportunity of new energy transformation, catching up, China's automobile industry has stepped out of the novice village, the historical mission of the joint venture has been completed, naturally there is no longer the meaning of existence, exiting the historical stage is inevitable. This point has begun to appear as early as 2018, in 2018, the foreign ownership limit of special vehicles and new energy vehicles was cancelled, and then the restriction on the foreign ownership ratio of commercial vehicles was cancelled in 2020, until today, in the process of gradually opening up foreign investment in automobiles, the hammer of the fate of joint venture car companies has quietly fallen.
This transformation is not achieved overnight, and in the process of grabbing the joint venture share ratio, it is bound to be filled with smoke, and in the face of a more open market, competition will only become more and more intense. In fact, we can already see that foreign brands have the upper hand in the equity war, after all, technology is everything, and whoever masters technology will have the right to speak.
In this case, how can a state-owned joint venture that is highly dependent on foreign brands for profit not fall behind? In Jiang Wen's words, this is kneeling to earn money. BMW Brilliance is a very typical example, Brilliance Auto sold a 25% stake in BMW Brilliance to BMW for 29 billion, and it is clear that Brilliance Auto lost the share ratio competition with BMW. Volkswagen increased its stake in Jacques Volkswagen, Volkswagen held 75%, Audi FAW New Energy project landed in Changchun, Audi and Volkswagen Group held 60% of the shares, cases abound, this phenomenon will become the norm in the future.
According to this development, will there be no joint venture car companies in the future? In fact, there is no need to look forward to the future, now many joint venture car companies have also declined, the mainstream joint venture camp in addition to the Volkswagen system, Toyota system, Honda system, Nissan system In addition to the figure of other joint venture car companies? FAW Mazda, Beijing Jeep, Guangzhou Peugeot, these once-famous joint venture car companies are now half a meter high.
The traditional joint venture model is bound to be thrown into the garbage heap of history, however, the new era has produced new demands, foreign car companies also have the need to take root in the Chinese market localization strategy, in the wave of electrification of private car companies to shine has become the next cooperation target of foreign car companies. Great Wall and BMW launched the beam car project, Daimler and Geely established Zhima Automobile Co., Ltd., Toyota and BYD joint venture to establish a pure electric vehicle research and development company, in these new joint venture models, independent car companies with their technical advantages in the field of new energy firmly grasp the initiative.
The opening up of the joint venture share ratio has drawn a perfect end to the policy of restricting the joint venture share ratio that has been implemented in the mainland for more than 20 years, and in the past two decades, the joint venture has played a vital role in the development of the mainland automobile industry. Under the protection of the shareholding ratio restriction policy, many Chinese automobile companies have not been washed away by foreign-funded enterprises, and the shareholding ratio restriction has given Chinese automobile companies a breathing space, during which we have grown up a group of excellent designers, engineers and technicians, and China's automobile industry has achieved unprecedented development.
The wheel of history is rumbling, it does not care whether you have reacted or not, the arrival of the "new four modernizations" has made everyone gather a consensus - independent brands already have the confidence to compete with foreign brands, in this case, it is very necessary to completely cancel the restrictions on the joint venture share ratio. Because if it continues, protection will become coddling, too comfortable environment will ruin an enterprise's independent innovation ability, this point refers to BAIC, leaving aside What is left of Beiben BAIC?
BAIC is a typical representative of excessive dependence on foreign brands and the loss of independent innovation ability, Mr. Lu Xun once said: "The road is too fast and easy to get to the foot, and the money is too easy to earn, and it will not bother to engage in research and development." "Yes, how painful it is to engage in technology, the investment is high, the return cycle is still long, since you can make money lying down, why bother toss yourself?"
This kind of sign must be nipped in the bud, want to lie down and win, uncle can bear, aunt can not tolerate! I am very optimistic about the new policy, the positive significance of the opening of the joint venture passenger car stock ratio is reflected in many aspects, the national level is certainly not willing to see the automobile market become a pool of stagnant water, the main theme of the car market should be the survival of the fittest, fierce competition helps to promote technological progress, especially to improve the awareness of innovation and risk awareness has a greater role in promoting.
After the opening of the joint venture equity ratio, the joint venture is bound to move closer to the direction of "sole proprietorship", as mentioned earlier, cooperation will still exist, but it will certainly be in a more innovative way. The battle for the right to speak between the foreign investors of the joint venture car companies and the Chinese holdings, no matter who wins or loses, the decline of the joint venture is obvious. Assuming that there are no more joint ventures in the future, what impact will this have on the Chinese automotive industry?
First of all, the strength of Chinese car companies will be more real, in fact, everyone understands that now a large part of the car companies sales prosperity of the appearance is doped with water, purely rely on the sales of joint venture brands to support the façade, without the help of joint venture brands, car companies book data moisture will be less, then see who will be ugly, hey, I think everyone has a number in mind, here I will not stand flag.
Secondly, with the further liberalization of the joint venture share ratio, competition intensified, the day of state-owned joint venture car companies lying to make money is coming to an end, which is why FAW, Dongfeng, Changan, and BAIC will jointly oppose the policy of opening up the share ratio, the profits of these enterprises account for a considerable part of the joint venture brand contribution, and the impact of the opening of the joint venture share ratio on these enterprises is very serious. Once the joint venture equity ratio is liberalized, foreign brands are bound to seek greater interests, who let the family have technical support? Finally, while eliminating the weak, the opening of the joint venture share ratio is bound to force the strength of the enterprises to find the correct positioning and deepen research and development.
For independent car companies such as the Great Wall, Geely, and BYD, which have strong innovation and research and development capabilities, they will hardly be affected by the new policy, they have been competing with joint venture brands for a long time, and the brand image has long been deeply rooted in the hearts of the people. On the other hand, state-owned joint venture car companies such as FAW, BAIC and Dongfeng, how should they negotiate with foreign investors after the stock ratio is liberalized? Will these car companies become foundries of foreign brands? Let's hope they can come up with some backbone.
Zoomed in to the entire industry, the liberalization of the joint venture stock ratio undoubtedly played a role in razor-cutting rotten meat, those who do not want to make progress cut off it, there is nothing to be sorry about, the right as a metabolism. Without those who want to make brisk money, the competition in China's auto market can develop in a more benign direction, which will help promote the overall progress of the mainland's automobile manufacturing industry. Moreover, from now on, everyone will be aware of the ironclad fact that equity can be taken away, but talent, technology, brand influence and other things cannot be taken away.
Write at the end
The flag is in sight at the bottom of the mountain, and the drums and horns at the top of the mountain are heard. The enemy was besieged for thousands of times, and I stood still. If its own strength is hard enough, no matter what other waves are fierce, the full opening up of the stock ratio will bring both opportunities and challenges, and Chinese car companies will usher in a new test. The intensification of market competition is bound to eliminate some car companies that do not want to make progress, leaving behind the sharp soldiers who can resist and fight, and the rest are the mainstay of China's automobile industry, allowing the big waves to go to the sand, and the gold to land and flow freely.