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October 05, 2025

Expert Analysis: How to Recapture Parts Recognized

At present, many parts and components companies in China are required to enter the supply chains of foreign automakers and often have to send their products to foreign headquarters for testing. This situation has caused frustration among industry professionals. The question is: how can this be changed? According to Wang Shengtang, the secretary general of the China Gear Professional Association, establishing an internationally recognized public laboratory could be a long-term solution for Chinese companies. Initially, it might seem reasonable for domestic suppliers to send their products abroad for evaluation, but if this continues indefinitely, it becomes a serious issue. Testing, like a court ruling, should not always be controlled by others. In the future, China must take control of the final decision-making process. To achieve this, Wang suggests that the industry should establish third-party laboratories that meet international standards and gain recognition from global peers. However, many experts point out that most domestic labs still fall short of these requirements. Interestingly, some officials from the CNCA mentioned that labs established by small and medium-sized enterprises in the 1980s and 1990s were actually more advanced than some national labs today. Additionally, there are already labs in China that meet international standards, but they are often located within major automakers like FAW or Dongfeng, making it difficult for other companies to access them. Wang emphasized the need for resource sharing and industry-wide collaboration. He proposed that such platforms should be funded by the entire industry, similar to the foreign model where 40% comes from companies and 60% from the government. Moreover, it’s crucial to align with international standards—using the same instruments, following the same protocols, and staying updated on global changes. If Chinese third-party labs can reach this level and produce reliable, internationally accepted data, foreign companies may eventually entrust them with testing. For example, a well-known research institute recently accepted a cooperation offer from a multinational automaker, showing that progress is possible. Experts argue that the root cause of China’s challenges lies in its weaker technical voice compared to foreign partners. This imbalance forces local suppliers to rely on foreign evaluations, leading to delays and high costs. To change this, China needs to strengthen its technological capabilities and engage in meaningful technical dialogues with foreign firms. Only then can Chinese companies gain real influence in joint ventures. Ultimately, improving the position of domestic parts companies requires more than just relying on government support or upstream partners. They must also find their own path to growth. As Chen Guangzu noted, even though Chinese suppliers still have a long way to go in supporting domestic brands, companies in regions like Zhejiang have shown that export and domestic sales can help improve management and quality. If these companies continue to strengthen their capabilities, they will have a better chance of entering the procurement systems of joint ventures or even multinational corporations. Gong Bing, CEO of Chongqing Qingshan Industry Co., Ltd., added that as competition in the market intensifies, especially at lower price points, joint venture companies may begin to value Chinese suppliers more. But this only happens when local companies can compete effectively and produce high-quality, attractive products. Breaking through the existing barriers won’t happen overnight—it requires consistent effort, innovation, and long-term strategic planning.

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