Due to the publication of a “Do not own brand for his own brand” speech, Long Yongtu, Secretary-General of the Boao Forum for Asia, who was accidentally put on the PK platform of China's auto brand debate, has finally found a suitable step to go.

On November 22, with the 2005 China (Guangzhou) Automobile Development Forum, Long Yongtu once again made clear his point of view: “Market-for-technology, now is the time.” This time not only did not stand up and refute on the spot, even the president of Chery Automobile Yin Tongyao also To a certain extent, they agree. Because behind the release of this view, it is the latest development of self-development activities and the leadership of the National Development and Reform Commission that spreads between joint ventures: "We must actively develop automotive products that belong to the joint venture brand."

"Joint ventures are like smoking opium?"

"A lot of people talked to me during the negotiations on joining the WTO. You don't have to look at the talks now. China has never had a good end to doing 'foreign affairs'. I don't believe it." Speaking of excitement, Long Yongtu waved. "The palm knife" won the rostrum. As the chief negotiator of China’s accession to the WTO that year, Long Yongtu claimed that he had “not known how many nights were spent” to protect the automobile industry.

After the Fifth Plenary Session of the Sixteenth Central Committee of the Communist Party raised the “independent innovation” to the national strategic height for the first time, some people were worried that the “Westernization Movement” of automobiles, which was based on joint ventures, was suspended.

Shao Qihui, Honorary Chairman of the China Society of Automotive Engineers, blunts some people's understanding of the central government's "independent innovation": "Now some people use this one-sided view to constantly criticize attacking corporate leaders and attack some mainstream companies. The normal development of enterprises is very harmful."

As early as 20 years ago, under the background of reform and opening up, with the establishment of a number of automobile joint ventures such as Beijing Jeep and Shanghai Volkswagen, the prelude to the “Westernization Movement” of the Chinese automobile industry was opened. However, the criticism of the car joint venture has never stopped.

"Joint ventures are like smoking opium," which is one of the classic quotations from Geely's boss Li Shufu. Guo Konghui, an academician of the Chinese Academy of Engineering, has interpreted this "joint joint dependency": if a joint venture wants to make money, it has to introduce advanced technology from the outside world. The introduction is not digested. It can only be introduced more and more dependent, and the more dependent it is, the more necessary it is to introduce. It's like smoking an opium addiction.

This is obviously not alarmist. When Lu Zhifeng, general manager of Guangzhou Automobile Group, reviewed GAC's investment in R&D, it also gave an industry-wide data: The ratio of input used by domestic companies for technology introduction and digestion and absorption is 1:0.078, while Japan and South Korea This ratio is 1:5 to 1:8.

Lu Zhifeng also pointed out the difficulties of domestic companies: The technological R&D capability was accumulated during the production process. No production was introduced, there was no certain amount of capital accumulation, and the technological R&D capability would not be able to be discussed. Zhan Qinghong, general manager of Guangzhou Automobile Co., Ltd. and deputy general manager of Guangzhou Honda, put it more directly: “I would like to engage in independent research and development in my dream, but this will require a process.” For example, if Guangzhou Honda wants to independently develop a model, rely on the current one year The sales volume of more than 200,000 vehicles is to amortize the cost of research and development, and it can't afford it. "Every business can't live, let alone make a contribution to the Chinese auto industry."

Yin Tongyao, president of Chery Automobile, also expressed his support for the joint venture in the automotive industry, although Chery has always been regarded as an example of its own brand. However, Yin Tongyao still expressed that he would “specially appreciate overseas companies investing in China” because it is these joint ventures that have provided “auto parts, trained talents, and established supporting systems” for local companies such as Chery. Even Yin Tongyao himself was trained by a joint venture company such as FAW-Volkswagen.

What's not to use?

In front of the Shanghai Volkswagen Design Institute, there are two replicas of the Terracotta Warriors and Horses. German designers said that they can be inspired by seeing them every day when they step in and out, and incorporate more Chinese elements into their designs. In the past three years, it was in this building that the Shanghai Volkswagen joint venture had been secretly developing the new Passat models.

Although some critics have criticized the "Skoda Superb's body for a popular front face," it is a new car for the public worldwide. Although the German personnel are still in a dominant position in the development of this vehicle, the degree of deep participation and the role of the Chinese side are far from being comparable to the adaptation of foreign models to China.

"We must do a brand new Chinese version. In the future, we will no longer introduce North American and Asian versions of the vehicle all day long. Instead, we will let other markets introduce the Chinese version of the model and let them turn in the technology transfer fee to us. "In the future of independent research and development of Guangben, Zeng Qinghong was full of impossibilities. According to sources, Guangzhou Honda is planning to develop a new mid-size car based on the sedan fit. However, Zeng Qinghong is not willing to confirm this news.

Many companies that have joint ventures or partnerships with foreign companies are taking similar actions. According to reports, Hainan Mazda is independently researching and developing a new A-class car, and even prototypes have been developed. Dongfeng Co., Ltd. has previously demonstrated its own-brand SUV manufactured by Zhengzhou Nissan. Prof. Yan Yanfeng, general manager of FAW Group, also stated that FAW-Volkswagen will launch products developed independently, and the joint venture's own brand matters will be co-ordinated by FAW Group.

“SAIC General Manager Hu Maoyuan said at the Fortune Forum that joint ventures can also build China’s own brand. I think he finally made a loud statement.” As a strong supporter of the “Westernization Movement” for cars, Long Yongtu seems to find it out. More firm support reasons.

Shao Qihui gave an overall negation to car joint venturers: "Politicalize the issue of science and technology, ignore or disregard the trend of economic globalization, emphasize that everything starts from scratch, and emphasize so-called completely independent intellectual property rights." "Do not stress the principle of openness. On the surface, it is the maintenance of national interests. In fact, it may be to safeguard the interests of small units and small groups."

"Technology change" also has a road map

Just as Wei Yuan set the tone for the “Westernization Movement” in the late Qing Dynasty for the “Westernization Movement” in the late Qing Dynasty, the “Westernization Movement” in the Chinese automobile industry also proposed the “change in the market”. Technology's loud slogan. However, this is precisely the place that has been criticized most often. "The market has changed, but the technology has not changed back."

Long Yongtu does not deny that this strategy has not achieved the desired results in more than 20 years, but he reminded that China’s opening to the outside world is not just a market-for-technology issue. “We spent the first 20 years mainly on the market. Employment, market-based taxation.” In recent years, as China has become the first choice for multinational corporations to transfer R&D centers, the market for technology will only become a reality.

Not long ago, in the "Olympic Plan" released by Volkswagen, it explicitly proposed the support for the development of independent brands in China. Just a few years ago, SAIC wanted to introduce the already lagging Santana technology platform and it was rejected by the public. When Volkswagen’s two joint ventures occupy 70% of China’s market share, they are unlikely to consider the “technical change” requirements of joint venture partners. The reason is simple. They do not want the joint venture partners to become their competitors one day by introducing technology.

However, with the accelerated opening of the Chinese market, other giants have poured in and developed rapidly. At this time, the public just realized that instead of allowing other giants to seize this part of the market and compete with them on a global scale, it is better to let the joint venture partners take over.

Of course, the joint venture has embarked on the road of independent research and development. Shanghai Volkswagen has made great efforts to develop the collar, because Shanghai Volkswagen is facing the crisis of broken models. Prior to this, Volkswagen had decided to place the Passat B6 on FAW-Volkswagen. Guangzhou Honda intends to transform the sedan fit into a mid-size car because the Honda Civic settled in Dongfeng Honda. Guangben could not obtain this grade. Hainan Mazda, Zhengzhou Nissan and even FAW-Volkswagen are also unavoidably trapped in a carefully constructed network of checks and balances.

Perhaps, the developers of the "market-for-technology" policy did not think at the outset that it was not the policy itself but the market competition that enabled the "technology exchange" to begin. The emergence of market competition is also the result of market opening.
View related topics: independent brands, where to go?


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