Trade Barriers: The Shadow of Auto Parts Industry


    According to customs statistics, from January to April this year, Guangdong exported 140 million U.S. dollars worth of auto parts, a significant increase of 35.8%, among which Shantou, Guangzhou, Jiangmen, and Shenzhen had the top four export rankings. However, according to the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products, it is pointed out that due to the incident of counterfeit auto parts, China's auto parts industry may also face U.S. trade barriers.

    In April of this year, Guangdong auto parts were exported to 99 countries and regions around the world. As the largest export market for auto parts in Guangdong, the United States exported over US$100 million in 2003. In the first four months of this year, the United States exported 56.64 million U.S. dollars, an increase of 58.2%, accounting for 43.2% of Guangdong's parts exports, and continued to maintain the momentum of rapid growth.

    However, according to the information provided by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, after the textiles, televisions, and semiconductor chips, China’s rising auto parts industry may also face trade barriers from the United States. According to figures released by the American Association of Motor Vehicle and Equipment Manufacturers (MEMA), the annual production value of counterfeit auto parts is US$12 billion, of which some are from India, South Korea, and China.

    The relevant experts of the Customs and Statistics Department believe that the concern of the United States over the counterfeiting of Chinese auto parts is a dangerous signal for the export of Chinese auto parts. For Chinese auto parts exporters, if they can't quickly improve the quality of their products, they will most likely be threatened by trade barriers. Experts believe that Guangdong has identified the automotive industry as one of the major pillar industries. Enterprises that produce auto parts for export should take precautions and respond positively. On the one hand, they should increase scientific and technological research and development to increase the scientific and technological content of products; on the other hand, they should also Consciously regulate export behavior, maintain the credibility of Guangdong products in the United States, and at the same time prevent the United States from setting up trade barriers, resulting in the unfavorable situation in which Guangdong's auto parts products are exported to the United States.


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