Chinese auto companies should seize this key strategic opportunity

The "proposal" put forward by the Central Committee for the "Eleventh Five-Year Plan" has been publicly announced. Although the 10,000-word proposal mentions only one vehicle and it is an energy-saving and environmentally friendly vehicle, the central government requires all economic and social departments to firmly grasp the key strategic opportunity period of the “Eleventh Five-Year Plan”, which is very strong and clear. The newspaper believes that every Chinese automobile company should quickly organize the Central Government's proposal to enhance the sense of urgency and responsibility for independent innovation.
The "recommendation" not only requires us to have a high sense of historical responsibility and a strong sense of urgency, but also requires us to have a broad world vision. From the perspective of the history of technological development, automotive technology has not seen major breakthroughs such as steam engines and electronic computers for hundreds of years. Although the global oil supply is tight year by year, the internal combustion engine power cars will continue to be used for at least 20 years, and the fuel cell vehicles still lack the conditions for marketization. Now, auto industry autonomy is still one of the important indicators of a country’s international competitiveness. The latest economic theory holds that there is only sunset technology and no sunset industry. The view that the automobile industry is a sunset industry can not be refrained from scrutiny at least in China.
Peace and development are still the main trends in international politics. This has opened up an international market for domestic cars and provided a good historical opportunity. Without going to the international market, the Chinese auto industry is, after all, the “dwarf” on the world’s car market. Home-made cars can only make China become a powerful automobile country only if they are on the international market and lead the way. The ability of technological innovation is the basic condition for Chinese cars to gain a foothold in the international market and achieve leapfrogging and overtaking. Since 2000, the export of domestic automotive products has been swift and violent, but the vast majority are labor-intensive products with low technological content, large production pollution, and high energy consumption. To change this situation, only to the technology to energy.
The "Proposal" pointed out that during the "Eleventh Five-Year Plan" period, under the premise of emphasizing quality and efficiency, China's national economy will maintain its momentum of rapid development. According to the National Development and Reform Commission, by 2010, the domestic automobile demand will reach 8 million to 9 million vehicles. While steadily advancing the development of urbanization, the central government will exert greater efforts to solve the “three rural issues” and coordinate the coordinated development of the eastern, central and western regions. Constantly tapping the potential domestic market provides a rare strategic space for self-owned brand cars to become bigger and stronger, creating an unprecedented historical opportunity. Obviously, if the self-owned brand automobile wants to occupy a larger market share, it must improve its independent innovation capability and increase its development efforts.
China has already entered the post-transition period after joining the WTO, and industrial protection measures will be completely eliminated. Whether it is from the perspective of corporate interests or from the perspective of national interests, it is an inevitable choice to transform the mode of economic growth and enhance the autonomy of the auto industry. If we say that the time of reform and opening up more than 20 years is a history of technology, capital, and management introduction, then from the “11th Five-Year Plan” period, it is a historical period of independent innovation. Development is the hard truth. It depends not only on speed but also on quality. It depends on the scale as well as quality. Whether China's auto industry is really powerful, it is not just about capacity, but also about the ability of independent technological innovation and management innovation. To safeguard national economic security and even revitalize the Chinese nation, the auto industry as the pillar industry and leading industry has no responsibility. Over the years, the Chinese auto industry has been criticized by the people of the country.
Technological innovation is the hard truth of manufacturing development. Building a harmonious society, a conservation-minded society, and an environment-friendly society pose even greater challenges to the Chinese auto industry, which has a relatively weak technological capability. The "Proposal" pointed out that the state will implement fiscal, taxation, finance, and government procurement policies that support technological innovation and improve the incentive mechanism for independent innovation. Obviously, without mechanism innovation, it is impossible to form a source of vitality for technological innovation. To effectively grasp the important strategic opportunity of the “11th Five-Year Plan”, Chinese auto companies must make major breakthroughs in both institutional innovation and technological innovation. What needs to be emphasized is that before the institutional innovation fails to make breakthroughs, the attitude of passively treating the innovation of the internal mechanism of the enterprise will undoubtedly mislead the country by mistake.
The Central Committee also pointed out in the "Proposal" that it is necessary to establish a comprehensive evaluation system for economic and social development that conforms to the scientific concept of development. We hope that this evaluation system will enable relevant departments to write the achievements of fostering independent innovation capabilities into the evaluation indicators for the performance of the leaders of large state-owned auto companies.

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