From “China Sourcing” to “De-Chinalization”, What is the next turning point for Chinese auto companies?

2000: China Sourcing

In 2002. Detroit Chinese Business Association (DCBA), a volunteer-based non-profit organization in South East Michigan, hosted the one and only China Auto Supplier Exhibition in the center of global auto industry at that time. Troy Marriott hotel, at the center of US auto Big Threes, first time witnessed the gathering of top Chinese auto suppliers. Some are the Joint Venture (JV) companies with US automakers that just learned technologies and products from their US partners. To USA automakers, the 30% or more cost cutting opportunities are no-brainer. Purchasing VPs were lining up to welcome the Chinese auto suppliers, some of them were their own JV partners. With that, Shanghai Auto Motors, YF Automotives, Kioto Lighting, ZhongDing were earlier arrivals in Detroit.

In early 2000, China outwards investment was timid and hesitated. Afterwards, Chinese private enterprises also ventured to Detroit: HengLong, Fuyao Glasses, and many ambitious but established players in China market. The aims were clear: establishing the sales teams and R&D Centers to work with automakers purchasing and engineering department. The strategy is solid: Manufacturing in China, supplying to US, Canada, Mexico auto assembly lines.