This week, the Appellate Body of the World Trade Organization made a final decision in Geneva on the United States, the European Union and Canada v. China auto parts import management measures. The ruling upheld the conclusion that the dispute resolution agency believed that China’s practices violated the WTO rules. China is here. Lost in the trade dispute.
The WTO Panel on Dispute Settlement Experts released its ruling report in July this year. According to the report, China’s taxation of imported vehicles by more than 60% of imported parts and components constitutes discrimination against imported auto parts, which violates relevant trade rules. Two months later, the Chinese side appealed according to the WTO dispute settlement procedures and rules, hoping that the WTO's appellate body can make a fair decision.
In accordance with relevant procedures, trade disputes between WTO members are first heard by an expert group and a ruling report is announced. If the party is dissatisfied with the ruling of the panel, it may appeal to the appellate body and its verdict can no longer be overturned.
[Analysis Review]
1. The WTO led by the developed countries added a snowstorm to the winter of the Chinese automobile industry in a timely manner and the result was not suspenseful. Past years of experience have proven that the WTO will not jump up and beaten itself, and people’s verdicts have never been changed. However, this snowstorm may make Chinese auto companies more calm, instead of making a duel to compete with people like they did half a year ago. We are concerned that some people use the opportunity to smuggle parts to build vehicles. This should be a matter of customs management rather than trade. As for the protection of domestic parts companies and vehicle companies, it is even more unnecessary. The crisis began less than half a year ago. I have already seen that Brilliance and Chery have received credit support from the state policy banks.
2. Some people say that after losing the lawsuit, it will lead to a decrease in the price of luxury cars. I do not believe that BMW Benz will sell the products into cabbage prices. Chinese people are always buying expensive goods and they are not buying well. If Mercedes sells a price to Camry, the Chinese are expected to buy a more expensive car. For a consumer group whose understanding of the brand is luxury and face, buying a Mercedes is much more costly. Sometimes, the maintenance of the brand does not have to give profits to consumers.
3. I have always hoped to see a few calm entrepreneurs in the Chinese auto industry come forward to give us an example and tell people that this industry should go like this. In the real estate industry, despite the chaos, there is still a Vanke, first do addition and subtraction, the strategy of specialization has always been praised; the telecommunications industry is out of Huawei, Ren Zhengfei with terrible low-key and terrible dedication, so that the entire Chinese The telecommunications industry has seen hope. You know how to write media titles. It is a fact that Huawei 3G erodes Alcatel’s share in Europe. In the automotive industry, when I saw Chang'an negotiate between Volvo and SAIC Zhongyi Buick, my first reaction was to laugh. This is a bit of a joke. It's not that the media is indecent or the company is not serious. Is there such internationalization? Did you guess news so much? Thompson Europe, which TCL bought that year, hasn't proved to be a nosebleed? Li Dongsheng now understands the rebirth of the eagle, but the auto industry hasn't seen whether he's an eagle yet. Start plucking.
4, has been very strange, even if the CEOs of domestic companies do not understand English, he should also be someone who will help him translate point information to see it. Pankaj Ghemawat's paper on internationalization has been published for more than a year. His book on internationalization has also been published for a long time. How do you expect the world to be flat? What kind of enterprise is to establish global competitiveness? It has established distinctive competitiveness for different regions. Why Toyota is strong is because it discovered early on that the trade communication within the region is far greater than the global trade communication. It is not necessary to establish a globally-unified network. It only needs to be perfect in the region. Collaboration is good. Ghemawat called this quasi-internationalization. The future of the world will become flat, but this process may be far beyond everyone's expectations, and its difficulty and obstacles will also be multiple of our imagination. At the cultural, economic, and development stages, various factors may cause the company's internationalization to hit a wall. The best way is to find your best product and make money in the most suitable area.
5. The WTO's criticism of China's auto industry tariffs is also an obstacle. We have not made good products yet, but we hope that the whole world will accept us as an excellent member of the trade organization. Whoever takes a long time will not be able to point it out. I can always see people saying that Bosch technology monopolizes the monopoly of the market. When one day people say that Chery’s technology monopoly is not a dumping of products, I don’t expect anyone to go into this tariff ratio.
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