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China's NEV boom boon for global auto sector

CIIE highlights importance of market to foreign car manufacturers

China Daily | Updated: 2024-11-22 09:40
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An eVTOL is on display at the seventh China International Import Expo in Shanghai on Nov 7. ZHANG WEI/CHINA DAILY

"We aim for the technologies developed in China to influence our R&D approach worldwide, enhancing products and technologies that can be applied across global markets," said Xu.

Besides world-renowned original equipment manufacturers, many auto parts suppliers are also eager to try their luck amid China's NEV drive.

Aptiv, a multinational developing automobile parts, made its debut appearance at the seventh CIIE, showcasing software and hardware products developed by local teams for the local market, with two themes in accordance with the market's trend — intelligence and electrification.

As a newcomer to the CIIE, Aptiv flexed its tech muscle via its unique strength involving both the "brain and the nervous system" of a vehicle, providing advanced solutions to software-defined and electrified vehicles.

Highlighting the opportunities they managed to sniff out in the Chinese market, Jiang Weihao, an engineer with the company, said Aptiv chose to base operations in China to stay closely aligned with the requirements of automakers in the world's largest auto market.

"China's manufacturing sector has matured significantly, providing a strong foundation for us to develop solutions that are cost-effective, reliable and tailored," Jiang said, adding that several exhibits and technologies were launched for the first time at this year's CIIE.

Despite rosy prospects, the Chinese NEV sector still faces headwinds due to trade protectionism. The United States and the European Union have this year both unveiled exorbitant additional tariffs on Chinese EVs.

At the 2024 CIIE, a major event based on openness, many industry insiders voiced concerns about such protectionist moves, while praising China's opening-up measures.

Trade protectionism disrupts international cooperation and technological progress in the automotive industry, impacting negatively on efforts in green transition and climate change collaboration, said Vice-Commerce Minister Ling Ji at a sub-forum held along with the CIIE.

"Development and technological progress of the NEV industry both rely on international cooperation. Regardless of external protectionist pressures, China will remain steadfast in its commitment to openness and collaboration," Ling said.

Taking the development of China's auto industry as an example, Yin Tongyue, chairman of Chinese automaker Chery, said that when global players Ford, Volkswagen and Toyota entered the Chinese market, they didn't push Chinese automakers out. Instead, they energized them.

"Now, as China advances in electrification and smart technologies, we may be leading in certain areas, and it's our turn to energize others, supporting their healthy growth and smooth transition to electrification," Yin added.

Notably, China caters to its domestic market and China's NEV exports constitute a small portion of its total production. While approximately 9.59 million NEVs were manufactured in the country last year, only about 12 percent of them were exported.

Adding to the discussion, Ralph Ossa, chief economist of the World Trade Organization, said trade tensions and conflicts have emerged, not only concerning trade, but also in areas like the green economy, environmental protection and energy conservation. Ossa also said that naturally, no one wants to see such tensions arise.

"International trade is an important part of the solution to climate change. The share of electric vehicles in total car imports was only about 5 percent in 2017. Now it is much higher," Ossa said. "And of course, China is an important part of the story."

Successful collaboration lies in finding synergy and sustainability, and cooperation and mutual benefit are advantageous for both China and the US, said Sam Wu, president and CEO of Ford China.

"From this perspective, global automakers are eager to see China's rapid progress in the NEV sector and are open to partnerships on a global scale," Wu said.

Xinhua

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