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According to the Russian "Leader" report, Russian Prime Minister Vladimir Putin recently signed a resolution document to temporarily raise the import tariff on automobiles. From 2009 onwards, import taxes on foreign new cars and old cars less than 3 years have been adjusted to 30%, and import duties on old cars from 3 to 5 years have been adjusted to 35%. The temporary increase of tariffs involves tractors, trucks and cars. The new tariff is implemented for 9 months and the current new vehicle import tax is 25%. The main purpose of this measure is to maintain the interests of the domestic automobile industry and foreign companies that are assembling automobiles in Russia. This is Russia's temporary increase of tariffs since November 14th, after imposing a 15% tariff on the value of imported automobile parts for automobile spare parts. Due to the large increase in tariffs, it caused the Russian public to protest. On December 21st, thousands of Russians held demonstrations in the Far Eastern city of Vladivostok to protest the government’s increase in automobile import tariffs.
Not only Russia but also other countries’ trade protectionism has shown signs of regaining its head. On December 19, the United States and Mexico requested consultation with China on the so-called export-related subsidy measures under the WTO dispute settlement mechanism. Economic crisis and trade protection have always been twin brothers. In the global economic downturn, countries must restrict imports in order to protect their economic development and improve trade conditions. In particular, the global economic recession next year is inevitable, and there may be a wave of trade protectionism worldwide. In the face of a tight export environment, what should China's commercial vehicle companies do? Did it continue to expand significantly or stagnated?
In my opinion, both attitudes are undesirable. Stagnating will mean losing opportunities, but also facing more fierce market competition in the country next year. A substantial expansion will mean that risks will increase exponentially. If control is not good, it may eventually delay the company. The reason for the suspension of production of buses in the United States is that overseas orders take up huge amounts of capital, while the final order “miscarriage†has caused the capital chain to break.
If China's commercial vehicle companies want to maintain their export growth, they must do the following four things: First, strengthen their confidence and clarify the opportunities. Export difficulties will not be small next year, but it also gave birth to opportunities. For example, the economic crisis has led to a decline in the spending power of some overseas customers and will shift to buying cheaper products. This has brought some opportunities for Chinese cars. In addition, Chinese commercial vehicle manufacturers often say that there is a shortage of composite talents who understand both cars and foreign languages ​​and understand overseas markets, and the cost of imported talent is high. Nowadays, foreign auto companies have laid off their employees and reduced their salaries. Domestic companies are just taking the opportunity to introduce these talents and the cost is relatively low. The cost of cooperating with some foreign import and export companies and the cost of expanding the sales network will also be reduced. These are opportunities for Chinese commercial vehicle companies.
Second, it is inseparable from the support and coordination between multiple government departments. Recently, Li Yizhong, Minister of Industry and Information Technology, stated that he will cooperate with relevant departments to comprehensively use tariffs and trade policies to expand the export of core technologies and labor-intensive industrial products. According to news from the Ministry of Commerce, the Ministry of Commerce is also working with relevant departments to formulate supportive policies, including the establishment of information platforms, mutual recognition of certification bodies, and support for premiums.
The export tax rebate rate, tariffs, and other policy functions are limited after all, and the problems faced by exports cannot be solved by relying on the introduction of a ministry policy. If the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Commerce, the State Administration of Taxation, the Ministry of Finance and even the Central Bank can cooperate with each other and play a "combination boxing", commercial vehicle manufacturers will have more confidence to go out.
Credit support is one of the key issues. In today's global integration, the automobile import and export trade can develop rapidly and cannot be separated from the support of credit. The financial crisis, first of all, led to weakened support for international trade in financial services and a serious lack of credit. In this case, even if there is an order, the company does not dare to answer, afraid that the buyer will default on the purchase price after the letter of credit is opened. In terms of preventing credit risks, it is more necessary for multiple ministries and commissions to cooperate and cooperate, such as increasing support from government agencies.
Third, it is inseparable from the coordinated operations of enterprises. In 2006, after the Ministry of Commerce regulated the export order, the export order of cars has improved, but there are still phenomena of companies fighting each other for price wars and vicious competition. According to statistics, in 2007, there were still more than 100 bus export companies. If the export situation is not optimistic next year, if companies continue to fight price wars, it will be tantamount to granting people to increase trade barriers and imposing anti-dumping tactics. As a result, the entire industry will suffer losses as a result.
Fourth, hard work, including overseas channel construction, after-sales service network support. Perhaps overseas orders will be less next year, but companies just take advantage of this to develop emerging overseas markets, strengthen support for local dealers, and train local maintenance personnel. This will be a booster for future growth in overseas business performance.
Trade protectionism lifts the export of commercial vehicles