Compete for the national prefix auto parts export base
The "Guo Zi Zi Zi" (National Auto and Parts Export Base) is a prestigious title that has long captured the attention of local governments across China. From being a national development zone to now aiming for an auto and parts export base, cities are eager to secure this iconic status. Recently, the Ministry of Commerce revealed plans to establish several key centers for automobile and component exports. However, not all cities were included in the initial selection, leading to frustration among those left out.
Chongqing, Guangdong, and Shandong, which had previously submitted applications, expressed their disappointment. A source from Chongqing’s Economic Commission admitted that the city was initially confused about the decision and even faced criticism from local officials. The application, submitted jointly by the Economic Commission and the Foreign Trade Department, was sent to the Ministry of Commerce, but the results did not go as expected.
At a symposium in Changchun, Vice Minister Wei Jianguo announced that the state would support the establishment of ten auto and parts export bases to strengthen industrial advantages and boost product exports. Later, during a conference in Shenyang, it was revealed that the four selected sites were Shanghai International Motor City, Shenyang Economic and Technological Development Zone, Wuhan’s Dongfeng Motor, and Changchun International Motor City.
This news sparked reactions from many cities, with some expressing strong dissatisfaction. Officials from Shandong, Guangdong, and Chongqing argued that while Shanghai and Changchun have strong historical ties to the industry, other cities like Shenyang and Wuhan also deserve consideration. Some critics claimed that the lack of communication between local governments and the central authorities might have played a role in the outcome.
In response, cities that felt overlooked began to push harder for recognition. Guangdong, for example, highlighted its strong export performance, with over $100 million in auto parts exports in the first quarter of 2004, accounting for 11.5% of the national total. The province also proposed building the world's largest auto parts manufacturing base in Huadu, Guangzhou. Similarly, Shandong pointed to its impressive growth in auto parts exports, which increased by 51.3% in 2003.
Chongqing, which aspires to become China's fourth major automotive hub, saw the exclusion as a setback to its ambitions. Local officials emphasized the importance of securing the "national prefix" to enhance its position in the industry.
Despite these efforts, the competition for the title remains intense. Experts argue that the real value lies in the preferential policies and investment opportunities that come with the designation. However, not all cities are fully prepared. For instance, Chongqing still lacks the capability to support full-scale auto production, while Shandong faces challenges such as small-scale enterprises and low technical standards.
Industry insiders warn that simply having the title may not be enough. As Jiang Jian of Delphi China noted, successful export bases require strong industrial clusters, large vehicle manufacturers, and efficient logistics. Without these, the success of the project is uncertain.
Moreover, experts emphasize that the key to expanding exports lies in improving internal capabilities. Companies must focus on quality, cost efficiency, and reliable management to meet global supplier standards. As Guan Xiaofei from the U.S. Kerry Group pointed out, small and medium-sized Chinese companies need to demonstrate consistent quality and timely delivery to gain international trust.
Ultimately, while the race for the "Guo Zi Zi Zi" title continues, the real challenge lies in building a sustainable and competitive auto parts industry. Cities must move beyond the name and focus on long-term development, ensuring they are truly ready to compete on the global stage.
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