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Recently, a report entitled "Status and Countermeasures for the Independent Development of the Chinese Automobile Industry" published by the Institute of Government and Enterprise of Peking University commissioned by the Ministry of Science and Technology has been published and has attracted the attention of the Chinese automobile industry. This report looks at the development history of China's auto industry in the past 50 years and analyzes the joint venture of China's auto industry. It concludes that the joint venture model does not promote the independent development of China's auto industry. In addition, through in-depth research on successful cases of self-development, the report clearly stated that “independent intellectual property rights†will determine the survival of the Chinese auto industry, that is, it is impossible for the Chinese auto industry to continue to survive under the conditions of relying on foreign products. However, as long as the Chinese government implements the correct technology and industrial policies, China’s autonomous auto industry can grow rapidly. After China's accession to the WTO, the number of intellectual property lawsuits in the automotive industry has increased day by day. Under the backdrop of the delay in the introduction of new automotive industry policies, this report, which has gone through four months of in-depth research, can be described as a wake-up call. The newspaper reporter conducted an exclusive interview with the director of the report, Professor Lu Feng, director of the Peking University Government and Enterprise Research Institute. Reporter: How long did it take for this report to appear? What is the biggest feeling? Road style: The formation of the entire report took three to four months. We visited a group of representative auto companies and did a lot of empirical investigations. The biggest feeling is that the existing joint venture model of the Chinese automobile industry cannot go on. Secondly, it is entirely feasible for the Chinese auto industry to develop independently. In addition, we believe that the Chinese government should protect and support indigenous enterprises that develop independently. The key to technology change in the market is design right confirmation. Reporter: The main point of the second chapter of the report is that the joint venture model “market for technology†does not promote the development of independent development capabilities of Chinese companies. What are the key bottlenecks? Road style: The bottleneck is the problem of “design confirmation rightâ€. In the joint venture, the key technology is provided by the foreign party in the joint venture, and the technology is theirs. The Chinese side of the joint venture can only do as it is, and cannot change the design arbitrarily. This is the issue of design right confirmation. SAIC Volkswagen used to have such an example. The design drawings provided by the foreign company had a nut size that was wrong. We knew that there was a problem in production, and there was no way to do it. We could only produce it strictly in accordance with the drawings unless the foreign party changed the drawings. . The purpose of engaging in joint ventures in China is to “change the market for technology.†The result is that most joint ventures do business with their own ready-made technologies. They do not need their own brains, the market, and the protection of national policies. Since car sales cannot go out, the joint venture model does not promote the development of independent development capabilities of Chinese companies. Reporter: What is the current status of the self-development of joint ventures in China? Road style: Nowadays, China's joint-venture auto companies have few independent technology developments, and most of them are "comfortable days" on the other side's technology. Advanced learning equipment, children do not back their own words, English will never learn a good reporter: According to this trend will be what will be the result? Road style: This trend will continue, and China will become a truly "processing base" for the world's automobiles. China will not have its own auto industry. It's like a child learning English. Parents buy a high-level learning device for their child. They have the perfect learning software to write. The basic thing is for the child to go back to the word, and he has to back it up. If you don't do this yourself, English will never learn well. It's no good learning conditions. The Chinese side of China’s joint venture auto companies is like this English-speaking child. Although there are such good conditions for foreign students to learn, if they don’t use their brains to study hard, they can never really understand technology. Didn't this become a pure processor of cheap labor for foreign companies? If this continues, can China still say that it has its own auto industry? A foreign CEO of a joint venture company once spoke bluntly: “In the joint-venture vehicle business, the Chinese management and technology contribution is equal to zero.†Reporter: Is there a successful self-development in the joint venture? example? Road style: Yes. For example, Changan Automobile, which cooperates with foreign parties and develops independently, has achieved very good results. This shows that the parent company that owns the joint venture is fully capable of independent development and is very practical. Self-independence, difference in courage Reporter: The Chinese auto industry, like Geely, has developed its own model. What about the current situation of independent development? Road style: Companies like Geely have great difficulties in their own development, including very tight funding, which requires them to devote more efforts to independent development than joint ventures. Like Geely, the first car model was not made on the basis of the drawings, but the metal puller knocked it out. Then the professionals join, followed by the development of the whole process. It was under such circumstances that they began to walk on this road. This is very much appreciated. This shows the role of "courage" in the autonomous development of the Chinese auto industry. In a word, they have begun to "do", so that at least one step closer to "doing a good job". And those who do not do it will always remain in the status quo. Reporter: After this survey, what do you think is the biggest difference between self-developed companies and companies that do not have self-development? Road style: The biggest difference lies in "courage". One is learning, and the other is not learning. The former has the courage to work hard, while the latter is only lying in the existing comfortable conditions to keep the status quo. "Joint venture" is only a condition for learning, but it is not learning. If you do not study, you can never progress. Companies that have started self-development are already accumulating experience while the latter is still standing still. Sooner or later, foreign capital will shake off the Chinese side and the joint venture will gradually disappear. Reporter: What difference will result from this difference? Road style: In the three years, the result of this difference will be obvious. The pattern of the Chinese auto industry will undergo a big change. Take the three major companies for example. If they do not start independent development, they will face many difficulties and their market share will gradually shrink. Firstly, the ratio of Chinese and foreign shares in the joint venture will change: Once the Chinese government relaxes its policy in this area, foreign parties will definitely demand control. By 2005, under international pressure, import quotas will be abolished. At present, the protection provisions of the auto industry in terms of the proportion and quantity of foreign-invested automobile companies in China will gradually be liberalized, and the second thing foreign companies must do is to shake off. After losing the joint venture, the joint venture will gradually disappear. And those auto companies that are already doing their own development, whether they are joint ventures or private ones, their prospects are always better and better. Independent development is the only way out for Chinese autos. The biggest problem is the lack of experience. Reporter: What are the biggest problems faced by the auto industry in China in the future? Road style: It is experience and lack of experience. Since the uncertainty of the automobile industry production is quite high, that is, in production, a large number of problems cannot be predicted at the design stage, it is necessary to “do moreâ€, that is, repeated practice, and technical data must be proved by empirical data. Data comes from development practices. Foreign companies have a database. This database is a record of these empirical data. It constitutes the core competitiveness of these auto companies. There are too few practical experiences in the independent development of the Chinese auto industry. This problem can only be solved by time. Reporter: In the end, what do you think is the fundamental way for the Chinese auto industry to grow? Road style: The fundamental way for the Chinese auto industry to grow up is to take the path of independent development. Here, I would like to appeal to the community once again. Only independent development is the only way out for the revitalization of the Chinese auto industry.