Due to the impact of the Diaoyu Islands incident, investment projects of Japan’s automotive companies in China are in trouble. The Jiangsu Danyang Auto Parts Industrial Park completed in July this year is a typical representative.
On October 28th, the reporters respectively called the Administrative Committee of Danyang Economic Development Zone of Jiangsu Province and the responsible party of the project in Japan. Both parties stated that the 50 auto parts companies originally planned for this year have only signed 23 contracts, and other intentions The Japanese companies have all stayed in the wait-and-see phase and have no plans to invest for the time being.
Since last year, Japan’s auto parts companies have been affected by large earthquakes and moved to large areas. In June of this year, the Danyang City Government of Jiangsu Province and the Japan Trade Promotion Agency (JETRO) jointly launched the Danyang Japan Auto Parts Industrial Park, which is mainly composed of Japanese SME auto parts clusters. The industrial park is scheduled to start production in November this year.
Danyang Rents at Zero to Solicit Japanese Enterprises
Affected by the earthquake in Japan last year, Japan’s auto parts supply system was once stagnant, which caused a huge impact on Japanese auto companies. Among the disaster-affected companies, small and medium-sized component companies suffered the most damage. This is because Japan’s large parts and components companies started their overseas strategic shift several years ago, and the ability of small and medium-sized enterprises to conduct overseas expansion on their own is relatively weak. Japanese small and medium-sized auto parts manufacturers decided to establish in China in a grouped manner. Production clusters.
The Danyang Japan Auto Parts Industrial Park, which is dominated by the Japanese SME Auto Parts Cluster, was launched in collaboration with the Japan Trade Promotion Agency in Danyang City, Jiangsu Province.
On July 2 of this year, with the opening of the first auto parts (quality) exhibition in Jiangsu Danyang, China-Japan cooperation, the Japan Automobile Parts Industrial Park (Phase I) was completed in Danyang City. According to the official website of the Jiangsu Provincial Government, Danyang Japan Automobile Parts Industrial Park has a total planning area of ​​1,000 mu and a total investment of 600 million U.S. dollars. The first phase of the project covers an area of ​​310 mu. Currently, standard factory buildings and office buildings have been built; the second phase of the project is 50,000 square meters, and the plant will start construction in August this year. It is estimated that 50 enterprises will enter the park this year. In the next 3 to 5 years, the park will introduce 300 to 400 Japanese-funded enterprises, and the annual output value will reach 10 billion yuan.
Yin Hui, deputy director of the Investment Promotion Bureau of Danyang Economic Development Zone, introduced that according to the agreement of both parties, the contracted Japanese auto parts companies will ship high-tech products to Danyang.
"The Japan External Trade Organization hopes to gain more support from the Chinese government in a grouped and organized manner," said the staff of the Japan External Trade Organization. It is reported that this time, Japan's component companies will enter the Chinese market, and all Japanese companies and organizations that have joined the Japanese auto parts industrial park will be supported by the local government and JAPIC-related organizations; they will jointly purchase raw materials for production, share logistics channels, and employees. Co-management and other systems to reduce production costs; At the same time, JAPIC's organization members do not need to spend too much effort on relevant regulations, customs clearance, and labor management, and will concentrate on production and R&D.
To attract Japanese companies, the local government of Danyang promised to provide the most favorable policies and conditions. It is reported that Japanese companies entering the Danyang Japan Auto Parts Industrial Park can use wholly-owned or joint ventures to lease the park's standardized factory buildings. The land within the industrial park will be free for these companies to use for three years.
50 Hopes at the end of the year
However, due to the impact of the Diaoyu Islands incident, the plan for entering 50 Japanese automobile companies in Danyang Industrial Park at the end of this year is doomed to be difficult to achieve.
On November 1, the reporter called Yin Hui. He told reporters: "As a result of the Diaoyu Islands incident, the recent investment promotion work has become very difficult. There is no news that other companies will soon be stationed." Yin Hui said that the Danyang Municipal Government has zero The investment policies for the deployment of components have not changed. Their investment projects are still ongoing. However, at the end of this year, 50 companies can enter the city, and even the future development of the industrial park depends on whether the Sino-Japanese relations are eased.
It is reported that at present, in the park with an area of ​​310 mu, 150 mu of workshops have already been built. By November, 2 to 3 factories are expected to start production. At present, the construction of the remaining plant of the auto parts park is still continuing. 23 companies that have already entered the park have already occupied all the existing factories.
The reporter called the Japan Trade Promotion Agency and the woman who answered the phone told reporters that Japanese companies’ investment has already been affected. Some Japanese SMEs that planned to invest in Danyang are now on the sidelines, and even some already invested companies have already reduced their investment. scale. After all, once the investment comes in, it will be a large number. If there is a divestment, the situation will be more difficult.
The person in charge told this reporter calmly that Danyang had chosen Danyang City to take full advantage of the favorable policies provided by the government of Danyang City.
Controversial Local companies want to leave
Danyang is an important auto parts industrial base in China with more than 800 local parts and components companies.
Yin Hui told the reporter that Danyang's local auto parts companies have insufficient investment in technology research and development, lack of core technologies, and homogenization of local enterprise products, resulting in serious vicious competition. The pace of industrial restructuring and product restructuring has been slow. Danyang hopes to have a complete product chain and at the same time promote the upgrade of local auto parts companies through the introduction of foreign investment.
In fact, the Danyang government's large-scale introduction of Japanese auto parts companies has caused controversy on the ground. Some local companies are worried that the large number of Japanese companies will affect the development of local auto parts companies.
At present, the status quo of the stagnation of Japanese auto parts companies in Danyang is exactly what Danyang local auto parts companies are willing to see. A local auto parts company official said: "They'd better not come. We didn't want them to come."
According to the person in charge, these Japanese auto parts companies are small and medium-sized enterprises, and their own technical content is not too high. When they come to the local area, they will cause a certain impact on local auto parts companies. When the Japanese Auto Parts Industrial Park entered Danyang, it once held a product demonstration. Many Japanese auto parts and components exhibited by local companies can also be produced by local companies.
Some Danyang auto parts company employees said with even greater indignation: “The most depressing factor for local auto parts companies is the local government’s actions. Local auto parts companies cannot enjoy free land use. Why can foreign companies enjoy super citizens in China? Treatment, let them use for free for 3 years? These parts and components are not unmanufactured in the country. Why should we introduce local competition?"
The company's personnel also revealed that some auto parts companies in Danyang have taken into account other areas of investment, not only can be closer to larger vehicle companies, but also can enjoy preferential policies for other local governments. "Who let the local government hurt the 'baby heart'?" he said.
Another person in charge of the local auto parts company said that although the local government provides a large number of preferential policies to introduce Japanese auto parts companies, the final scale will not be great. There are no vehicle companies in Danyang, and the impact of the Diaoyu Islands incident will certainly allow these companies to invest in other regions.
An industry expert puts forward his advice: “Local governments want to attract foreign investment solely on the basis of 'super-nationals’ will not be successful. They are careful not to hurt local companies, and they have lost sesame seeds and lost watermelon.â€
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