Research shows that China’s auto industry has less than 50 points of international competitiveness
According to the "China Automotive Industry Development Report 2008," jointly released by the State Council Development Research Center's Department of Industrial Economics, the China Automotive Engineering Society, and the Volkswagen Group, China's automotive industry still lags significantly behind global leaders in terms of international competitiveness. The report highlights that the overall competitiveness score for China's auto sector is 47.63, which is less than half of the maximum possible score of 100 for developed countries. This indicates a considerable gap between China's current position and the level of advanced automotive industries.
The report breaks down key indicators of competitiveness, revealing that China's environmental competitiveness stands at 59.13, industrial organization at 43.50, innovation at 38.68, and international performance at just 10.01. These figures show that while there has been progress—China’s overall competitiveness increased by 40% after five years of WTO membership—the industry still has a long way to go before it can match global standards.
The report, known as the Auto Blue Book, marks the first time such a comprehensive assessment of China's auto industry has been published. It emphasizes the need for strategic reforms to enhance competitiveness, including the promotion of fair competition policies, national strategies for growth, and the development of energy-efficient technologies.
To improve competitiveness, the report suggests several key measures. First, implementing fair and effective competition policies is essential. This includes eliminating local protectionism, breaking administrative monopolies, and ensuring equal treatment for domestic and foreign companies. Second, a clear national strategy should be developed, focusing on core components, service trade, and integrated innovation.
Third, the industry should prioritize energy-saving and environmentally friendly technologies to gain an edge in the global market. Fourth, social regulation must be strengthened, with a shift from economic control to product certification and quality management.
Fifth, promoting industry restructuring and developing automotive clusters will help create stronger, more competitive firms. Sixth, fiscal and tax incentives should be introduced to encourage the purchase of energy-efficient vehicles. Seventh, supporting industries such as parts and components must be developed to strengthen the supply chain.
Finally, increasing public investment in research and development, especially in advanced technologies like hybrid and electric vehicles, will drive innovation and industrial growth. These steps, if implemented effectively, could significantly boost China's position in the global automotive landscape in the coming years.
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