The auto industry can greatly increase the employment rate, attract foreign investment and create a large number of export opportunities, and is recognized as one of the important driving forces of a country’s economic development. In order to develop the auto industry and maintain its favorable position in international competition, various governments have introduced a series of laws and regulations and adopted various forms of interventions, which have had an important impact on the development of the auto industry. Generally speaking, the policies of governments of various countries mainly focus on two aspects: First, to what extent foreign automakers are allowed to enter the domestic market; Second, to provide support to domestic automakers and to what extent foreign companies are Discriminatory policies. Judging from the macro-control policies adopted by the governments of the world's major auto-industry countries, the United Kingdom and the United States have no restrictions on foreign access, and they apply equal national treatment to domestic manufacturers and foreign businesses. Although Germany does not have restrictions on foreign business access, Foreign businessmen adopt discriminatory interference policies; South Korea basically has no restrictions on direct investment from foreign automakers and controls the use of non-tariff barriers on imported cars; while France and Japan take restrictive foreign access and discriminate against them. Interference policy.
The policies for the development of the automobile industry of various governments are roughly summarized in the following aspects from the content:
(I) Tariff barriers and non-tariff barriers
In order to protect the domestic auto industry, most European governments and Japanese, Canadian, and Australian governments have imposed tariff barriers on the import of cars. This also stimulated foreign investors to set up factories in the country to avoid high tariffs. However, few developed countries today use high tariff policies to restrict imports. The EU's common car tariff is 11%, the United States is 3%, Japan does not have any import tariffs.
Although the tariffs of cars in major developed countries are generally low, other specific forms of trade protection have been adopted, such as implementation of import quotas, “voluntary export restrictions†and restrictions on import ports. In the 1970s, Japanese automobiles quickly seized the European and American markets. The United States and Western European countries introduced the “voluntary export restrictions†to Japan. The US and Japanese governments agreed that the bilateral policy will last for three years.
The European Union negotiated with the Japanese government an auto agreement that is valid for a period of 7 years, restricting Japanese auto imports from exceeding a given percentage of the total EU vehicle sales.
(II) Proportion of Domestication and Export Requirements
In order to replace the simple import of Japanese cars, the United States and the European Union encourage Japanese manufacturers to establish overseas production bases in their main target markets and formulate localized proportional policies to limit them. After the bargaining between the EU and the Japanese government, it was finally determined that if the car's final home-made ratio reached 80%, it could be accepted as a product originating in the EU, although the French government insists that the ratio should reach 100%.
This provision was later adopted by many governments of developing countries and formed a strong policy basis for import substitution. Its direct purpose is to protect the development of the domestic automotive industry. The major auto-producing countries in developing countries - India, Brazil, Argentina, Mexico and Spain - have adopted such measures. In most cases, the localization ratio is set between 50% and 90%.
Since then, the auto industry policies in developing countries have gradually shown a trend of promoting exports. In addition to the traditional support provided by a government for export credits, tax incentives, etc., the governments of major automobile-producing countries in Latin America have also set export requirements—automakers must export a certain percentage of finished products each year. By the end of the 1980s, the Mexican government had greatly adjusted its localization requirements and reduced import restrictions in order to create favorable conditions for the country to increase its ability to participate in the global division of labor.
(III) Investment and Development Policy
The French, British and Italian governments have formulated various policies for the investment and development of the automotive industry, which have extensively interfered with the development of the domestic automobile industry, such as the reorganization and integration of the automotive industry. These countries have direct ownership of certain auto manufacturing companies in the country and provide large-scale financial support and subsidies, but they never provide subsidies to loss-making companies. European governments also use regional development policies to influence the location and investment strategy of auto manufacturing companies, and try to persuade and attract domestic and foreign auto companies to set up factories in underdeveloped areas, such as encouraging tax incentives to build assembly plants in high-unemployment areas.
The Japanese government has a profound effect on the development of the automotive industry in China. In particular, in the 1950s and 1960s, the government introduced technology using financial assistance, financial subsidies, preferential fiscal and taxation, and encouraged the use of franchise agreements to obtain urgently needed Automotive production technology.
Some developed countries focus on building a service support system for the automotive industry. The United States believes that road maintenance is the best support for the development of the automotive industry. Since the 1930s, the government has invested heavily in legislation to plan and build a nationwide highway network. The Korean government also devotes great efforts to urban planning and road traffic. To alleviate traffic congestion in major cities, the Korean government collects tolls on the main traffic routes in urban centers and implements more effective traffic control systems, such as bus-only passages.
The automobile tax in the United States is much lower than in other countries in the world, and in particular, the purchase phase is even lower. Fuel tax is mainly levied. In order to encourage automobile consumption, the U.S. government first established legislation for the compensation for defective recalls and quality accidents. Similar laws were later widely applied in Germany and Japan.
(D) Create a regional integrated environment
In order to promote the development of the domestic automobile industry, some countries actively create or strengthen regional integration.
The determination of the EU Common Market in 1992 eliminated the barriers to the flow of technology and materials and cleared the way for the free trade of complete vehicles and spare parts. Automakers no longer have to fight for various licenses to enter the markets of various EU member states, and make any technical changes to the car design specifications, thereby greatly reducing the cost of car design and production, and building the European automotive industry to obtain Prerequisites for greater efficiency. After the ten countries in Eastern Europe formally joined the European Union in 2004, it will not only provide a broader consumer market, but also provide a lower-cost production base and procurement market for multinational auto groups.
In North America, some agreements between the governments of the United States, Canada, and Mexico on market integration have also had a profound effect on the automotive industry in North America. In 1965, the U.S.-Canada automobile agreement formed a new pattern for the automotive industry in North America. Major automakers have restructured and established a new overall structure in the intercontinental sphere. In 1988, the Canada-United States Free Trade Agreement also put forward some important provisions for the automobile industry. The agreement redefines the "North American origin value-added standard" so that officials can determine which companies' products can be free of tariffs in the North American market. In the North American Freedom Agreement, the participation of Mexico in this low-cost production country further changed the automotive industry in North America. In the following ten years, the North American car tax was gradually phased out.
(5) Environmental Protection and Safety Legislation
All countries have formulated corresponding policies in terms of environmental protection, energy saving and safety. These policies restrict the design, technology, and manufacturing materials of automobiles and thus affect the production costs of automobiles. The U.S. government has set fuel economy standards to reduce the average fuel consumption of vehicles. Another plan stipulates that by mid-2004, six (6) mid-size cars will achieve three times more fuel efficiency than they did in 1994. In terms of tailpipe emission regulations, European governments have stipulated that the implementation of the regulations governing the emission of truck-cars is Euro-1 (1992), Euro-2 (1996), and Euro-3 (2000). The three-stage emission limit is increasingly stringent. In South Korea, there are currently 38 safety standards for passenger cars.
(VI) WTO Countermeasures
The rapid development of the Japanese auto industry has always been inseparable from the strong protection and support of the government. In Japan, which joined the GATT in 1958, the government’s tariff protection for the automobile industry was not completely eliminated until 1978. After entering the 1980s, with the continuous strength of the auto industry and the pressure from other WTO members, the Japanese government has significantly reduced its trade barriers. More and more foreign cars are running on the streets. In order to support the domestic auto industry, the South Korean government spent more than 20 years to reduce the tariffs on imported cars to a lower level, until 1987, the import car was also subject to a 60% tariff. In order to join the WTO, the South Korean government drastically reduced tariffs. It was reduced to 10% by 1994 and when it was formally added in 1995, the tariff has been reduced to 8%. After the accession to the WTO, the Korean government paid great attention to using the WTO's relevant exception clauses concerning developing countries and adopted certain protective measures for its own automobile industry.
The “Auto Industry Industrial Policy†promulgated by the Chinese government in 1994 is basically a restrictive policy that is embodied in a strict administrative system, restrictive trade and investment protection policies, including strict tariffs, non-tariff measures and strict The localization ratio and equity restrictions, as well as restrictive consumer policies, in particular, there are a variety of taxes and fees in a variety of procedures and cumbersome procedures. This type of government-led model clearly cannot adapt well to the accelerating development of economic globalization and trade and investment liberalization, and it also hinders to a considerable extent the integration between the Chinese auto industry and the global auto industry after China's accession to the WTO. In order to adapt to the needs of the new situation, it has laid a good institutional foundation for the long-term development of China's auto industry. The government's management model and policy system for China's auto industry are also undergoing corresponding adjustments. For example, the defective product recall system will be introduced soon. The new "Automobile Industry Development Policy" promulgated in June 2004 removed content that was inconsistent with the WTO rules and China's commitments, such as eliminating the requirement for localization and greatly reducing administrative approvals. In order to further enhance the international competitiveness of China's auto industry, it is also necessary to deepen reform at the policy level.
First, relax market access and reduce trade protection and investment restrictions. China's auto industry needs open and competitive market environment and policy orientation. It can properly learn from South Korea's development experience, effectively protect the domestic auto industry within the framework of the WTO, and make full use of the many opportunities given by WTO to develop faster. The matters examined by the government should be mainly safety, environmental protection, energy saving, and other projects that involve the public interest. In the case of joint ventures, cooperation or strategic alliances between domestic major auto companies and foreign companies, the restrictions on the proportion of equity can be appropriately relaxed.
Second, we must selectively refer to the automobile tax system of the United States and Japan, improve China's encouraging automobile consumption policy, reduce excessive taxes and fees in the consumption and use of automobiles, and eliminate irrational and illegal fees for various purposes. Simplify collection procedures, increase the transparency of charges, standardize taxation and management, and effectively safeguard consumer rights and interests.
Third, we must fully understand the importance of improving the infrastructure construction for the development of the auto industry and increase investment in highway construction, road parking lots, gas stations and related technologies such as satellite navigation. Strengthen transportation facilities as an important service support system for the automotive industry.
Fourth, encourage the technological innovation of enterprises, especially the joint development of major scientific research projects between enterprise groups. Provide subsidies and subsidies for governments with high-risk and cutting-edge R&D projects; provide appropriate fiscal and taxation support for technology-introduced projects that meet national industrial policies; and encourage joint ventures and cooperation with foreign companies to establish R&D centers in favor of Develop more automobiles with high technology content, environmental protection and energy conservation, and integration with international standards and components with common characteristics; increase the popularity and application of some existing advanced technologies related to the automotive industry, such as satellite navigation systems.
Fifth, publicize the concept of domestic goods, provide protection and huge impetus for the development of the automobile industry. The government should advocate mainstream media to promote the self-development of domestic cars, change some people's consumption concepts, and improve consumers' car consumption awareness. Legislation restricts the purchase of imported cars by public funds and protects the automobile industry in China.
Sixth, actively use international economic cooperation organizations to create a broad international arena and a relatively relaxed environment for the restructuring and upgrading of China's auto industry. Regional financial, investment, trade and technology markets within regional organizations can provide more convenient conditions for China’s auto export-oriented and international operations. China's automobile industry policy should also appropriately emphasize the expansion of exports and participation in real international cooperation, and give priority to supporting export enterprises in terms of loans.