While Chinese auto parts replace German auto parts as the largest exporter to the US for the first time and yet rising, the Chinese auto parts manufacturers incur tension from the importers. Till the end of last year, there are over a dozen of antidumping cases involving Chinese auto parts.
China exported auto parts being valued at $1.936 billion to the US in the first quarter of this year, overtaking Germany's export value of $1.934 billion during the same period, positioning as the second largest auto parts exporter to the US after the No.1 Japan.
Statistics from the China Association of Automobile Manufacturers shows that China's auto part exports have jumped more than sixfold in the past five years, nearly topping $1 billion in April and emerging as one of the fastest-growing fields of Chinese industrial products sold overseas. Half of these auto parts go to the US, while most of the rest going to Europe and Japan.
Experts say that if the surge of exports continues for three to five years at a decreasing price, and any local industry related would obviously be devoured and trade deficit can occur. Finally, Chinese auto part exporters will cause backlash from authorities, in excuse of anti-dumping.
Chinese auto parts successfully laid a path into the countries that are yet to advanced in the whole-car production, i.e. Brazil, India, Ukraine, and these developing nations will probably set barriers for the protection of the local auto industry. Chinese auto parts makers will face wide anti-dumping, not just from the big importers such as the US.
However, the advantages China auto part makers enjoyed, such as low cost of labor and raw material, the RMB currency, will still be attractive to the domestic and foreign automakers and parts suppliers.
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