In recent statements, an official from the Ministry of Commerce emphasized the importance of vigilance and self-protection for Chinese auto parts companies facing foreign anti-dumping practices. The official highlighted that China must be prepared to counter unfair trade practices and prevent the influx of dumped auto components into the domestic market.
Currently, foreign automakers hold a significant share in the Chinese auto parts market. Over 70% of the world’s top 100 auto parts suppliers operate in China, with multinational companies controlling around 50% of the market through joint ventures or wholly-owned subsidiaries. In contrast, local Chinese auto parts firms are often small, fragmented, and face intense competition, leading to low overall efficiency and limited growth potential.
With the removal of foreign ownership restrictions in joint ventures, many multinational auto parts companies are shifting toward full ownership in China. For example, Deloitte, Mahle, and Bosch have established over 10 new production facilities in less than a year, mostly as wholly-owned entities. Additionally, three foreign companies have set up R&D centers in China, investing over 100 million yuan each.
Within Sino-foreign joint ventures, Chinese partners often lack core technologies and decision-making power. This makes it difficult for local auto parts manufacturers to access the complete vehicle supply chain. As a result, foreign auto parts dominate the market, increasing pressure on domestic firms.
China's key auto components market remains heavily reliant on imports. According to the Ministry of Commerce, Chinese auto parts companies still lack strong supporting capabilities and independent innovation. Most products are low-tech and low-value, while high-value, high-profit components are mainly imported. In the first quarter of this year, China imported $2.777 billion worth of auto parts, a 58.1% increase compared to the same period last year.
Many advanced automotive components, such as high-end engine systems and electronic controls, remain beyond China’s current technological reach. Chinese engines, for instance, are still at the level of 1990s international standards, and the country struggles to produce cutting-edge automotive electronics. This reliance on imports highlights the need for greater investment in R&D and technology development.
To address these challenges, the Ministry of Commerce has implemented an early warning system since 2002 to monitor and protect the auto industry. This system has helped companies better understand anti-dumping measures and improve their operational strategies. Relevant departments have also launched information platforms to provide timely data and support for businesses.
The official noted that while the current monitoring system is effective, there is room for improvement. Expanding the industrial safety database and enhancing the depth of analysis will be key priorities this year. Companies that suspect dumping or harm from imported products are encouraged to collect evidence and file complaints with the Ministry of Commerce promptly.
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