Ten years after China's accession to the WTO, in the contest with foreign giants, Chinese local enterprises have completed a great evolution from weak to strong. Nowadays, many industry enterprises have grown into a strong wolf, bravely stepping out of the country and heading for the world.
Over the past decade, China's automobile market has developed rapidly. While becoming the largest consumer market in the world, Chinese local automobile brands have begun to go abroad, and a round of international mergers and acquisitions has taken place.
Over the past decade, China's e-commerce has sprung up, and goods made in China have been sold all over the world through the Internet. In 2010, China's foreign trade online trading market revenue exceeded 10 billion yuan.
Over the past decade, China has changed from a net importer of steel to a net exporter. China's household appliances industry is also experiencing internationalization and breakthrough in the past decade. Its scale has increased from less than 200 billion yuan in 2001 to 964.2 billion yuan in 2010, while its export has increased from 7 billion dollars in 2001 to 150 billion dollars in 2010.
Automobile from Legitimate Manufacturing to Overseas Mergers and Acquisitions in Ten Years
Industry
Dual competition between market and technology
China's automotive industry started in the 1960s, and all the licensed automobile manufacturers are state-owned enterprises, while private enterprises that intend to build automobiles are blocked by the system. With the hammer of China's entry into WTO settling down, China's automobile industry has finally opened the door to private automobile enterprises. However, whether state-owned or private, young Chinese auto companies ushered in the world of foreign cars with the same anxiety.
In 2001, the total sales of automobiles in China were 2.38 million. On December 11, 2001, China formally became a member of the WTO. The golden decade of Chinese automobiles was triggered.
"At that time, many overseas auto brand owners realized that a great market was coming into being." In an interview with reporters, Zhang Junyi, senior analyst of Roland Berger automobile industry, said that China's accession to the WTO has made this great automobile market a success.
There are also worries behind the prosperity. China's automobile market has developed rapidly in the past decade, but the sales of self-owned brand models only occupy less than 30% of the market share, and more than 70% of the market share is occupied by overseas brand models. And the sales share of independent brands has declined this year, because of the lack of technology, the future development prospects of independent car companies are very uncertain.
When China entered the WTO negotiations, it had a hand in the automotive industry. The WTO has promised a six-year protection period for China's automobile industry, and the state government also has conditions to restrict joint ventures between overseas automobile companies and China. The purpose of doing so is to inform China of foreign technology and advanced enterprise management experience.
"Our automobile industry has gained two major advantages for China's entry into the WTO. One is the largest market in the world. The second is to learn how to build cars." Qi Yumin, chairman of Huachen Automobile Company, said quickly, "I use words objectively. We are not the leader in making cars, we are not good at making cars, but we are able to build cars."
Zhang Junyi also said that there is no problem in the production of vehicles by Chinese automobile enterprises, but the key technology is still in the hands of the outside world. For example, key advanced technologies such as engines and gearboxes will not be shared by foreigners. The technology of Chinese and independent brands in joint ventures is indeed weak in this area.
Wang Xia, chairman of the Automobile Committee of China Council for the Promotion of Trade, believes that key technology is an accumulation of capabilities. It is not easy for Chinese automobile enterprises to learn key technologies. The future outlet for independent automobile enterprises lies in efforts to accumulate and innovate independently. In the automobile market after the Golden Decade, how to achieve technological breakthroughs for Chinese independent automobile enterprises to reach or surpass the international automobile brands is a big proposition for the development decision makers of China's automobile industry.
Enterprise
Geely became an elephant-swallowing Python in 10 years
On Nov. 9, 2001, Li Shufu, the owner of Geely Automobile, was immersed in the great joy of realizing his dream. On this day, his Geely passion finally entered the Chinese car production catalogue. For the sake of the car production qualification, Li Shufu has been running for seven years. In November 2011, Li Shufu became the chairman of Geely Automobile and Volvo Car Company. Ten years ago, Geely was the first private car manufacturer in China. Ten years later, Geely became the first multinational company in China to acquire overseas automobile companies.
Since 1994, Li Shufu has started to build automobiles, but in order to produce automobiles in China, it must first pass the national approval and enter the automobile catalogue. But at that time, it was impossible for private enterprises to do so. Li Shufu recalled, "Because the country did not agree to produce automobiles at that time, we made motorcycles for Mr. Geely, the first private motorcycle manufacturer in China." For many years afterwards, Geely had been running for a car's "probable birth certificate".
Li Shufu told reporters in an interview, "The only reason why the country disagrees with Geely's entry into the automotive industry is that the industry is too deep, the competition is too fierce, and Geely's entry must fail." For this argument, Li Shufu is not reconciled: "We hope that the state can allow private enterprises to boldly try, allow private enterprises to dream of cars, billions of investment we do not want the state a penny, do not lend a penny to banks, private enterprises at all costs are self-conceited, do not take risks by the state."
On the one hand, Li Shufu's unyielding belief, on the other hand, the country hopes that after joining the WTO, the domestic automobile industry will be more competitive in the face of foreign shocks. Finally, 10 days before China's accession to the WTO,
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