China automotive trade breach

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Laibao SR-V

The European Commission is threathening legal action against China for discrimination against European car companies, with their latest decision to revise tax tariffs for car parts which indirectly forces companies to source components from Chinese producers.

China has reclassified car parts as ‘fully finished cars’, something like CBU, which carries a 34% tax, double from the previous rate. Because parts are expensive to bring in now, in order to be economically competitive manufacturers have to source parts from Chinese producers to avoid the high tax.

The problem is foreign car manufacturers are not allowed to setup their own businesses in China. They must partner up with an existing Chinese company, forced to accept minority shareholding. Allowing a Chinese company access to all your designs would only result in one thing, vehicle piracy!

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About the Author

After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history. An avid electronic gadget aficionado as well as big-time coffee lover, he's also the executive producer of the Driven motoring TV programme.

Comments

  1. Aris Tee says:

    omG… when will they stop… ripping designs 100% is definitely NOT the way to go…

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  2. Piracy says:

    Mmmm no wonder my boss' c-class looks familiar with the one produced by Geely (or Geli..!). BMW 7-series and Merc A-class currently one of the many piracy victims. China PRC (Piracy Republic of China)…

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  3. Michael Chua says:

    If there's one thing the Chinese in China r good at. Then it's copycat piracy. They r the best at it.

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  4. Traliccio says:

    Well,at least they tried.

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  5. yhtan says:

    Wah….copy king of king!

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  6. cipanyellow says:

    China

    Stat

    —-

    Copy-God

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  7. lanai says:

    IS nothing new isnt it?

    In school we copy and paste

    From blackboard to text books

    We learned it well

    Even when we work

    We still do the copying

    From invoices to ledgers

    Because this time it is money

    So my friends we learned

    Yet we dont know how to use

    Good only in copying examination

    Bad in our own backyard

    Now look at Proton

    Learning something on its way

    Giving face lift to some models

    Only if BOD learns from China

    Tied it up nicely no dispute

    " I get your trade secrets

    I made your economy"

    It is a good way to made a name

    As long as nobody really complains

    You get a chic and reliable car

    Pockets never blow into many holes

    Perhaps I say we should do

    There so many great cars to choose!

    copy cat for business

    14/12/05 10.32am

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  8. LocTech says:

    dun play play… China has bought Malaysian's most powderful engine… Petronas' E01W 2.0 217bhp engine design to put inside their cars….

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  9. cloudz says:

    wad a rip off..damn a*shole

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  10. [Half-Half PBâ says:

    wahahah!!! at least China knows it has the advantage (low labor and raw materials cost and high growth HUGE market) and abuse it to the max,

    unlike here in bolehland where we dont have the comparative advantage like china, yet we want to abuse it as well? piracy? we have all these Intellectual piracy in form of cd, vcd and dvd from songs to movies to softwares. cars? we have cut and paste designs and claim as our own. FDI? we want them omputih to must have at least 30% bumi ownership or equity shareholding baru boleh masuk…

    so what better are we than those china copycatkings??

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  11. anyone says:

    cHINA kING oF tHICK fACE

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  12. holankan says:

    they copy also got standard one, you think they simply copy from other cars meh…. if you can see they copy from proton then proton must be very famous lo…..proton really 'ho lan kan' lol

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  13. DeCosby says:

    Like Wu Jin Tao said, China developm is not a threat but opportunity. It depends how u look at it.

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  14. muthu says:

    i think goverment should follow the china automotive industry in order to become giant in this industry………. all foreign car should get their spare parts from local company…… ahak ahak ahak….

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  15. alansm says:

    This is what can be deemed as government-endosed-piracy. This latest development can be view like how a cunning wolf can use it's skill to slowly bait their victim into it's jaw. This can only happened inside China. I hope the foreign car maker will drag the China government to court to teach them a lesson. It's getting out of hand. Let us take a look at this piracy example

    from the land of piracy:-
    http://www.clubsonyericsson.com/forum/index.php/t
    &
    http://mobile.163.com/special/B/00111KKC/BLACK%20

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  16. Ihateproton says:

    china can tax parts from other countries but other countries dont tax china parts?

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  17. blackhead says:

    well atleast they have free copy n free learn, unlike malaysia paid too much for learning, until now still cant give up producing the saga… that's really a "saga" the name mean for it

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  18. KY says:

    not terribly different from here anyway.

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  19. apbt says:

    "The problem is foreign car manufacturers are not allowed to setup their own businesses in China. They must partner up with an existing Chinese company, forced to accept minority shareholding."

    This thing is applied to Malaysia too, well i can say, the chinese are making use of their chance. Compare to Malaysia, what have we done?

    China->Not good but not too bad……

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  20. Handsfree says:

    well well.. to all bolehland people… this bolehland is a place that complained by people from Bolehland…… people in copycat land.. wanted so much to cum here… yet we nag nag… complained….. macam macam….

    by now.. we knows.. the copy cat "how busuh" they can be…

    is time.. for belohland.. to support own product n by proud of belohland… some small n little problems here is fine….. rather then.. there… no 1 can trust… walk on the street of hungry n lier…who knows… 1 day we will might consume "Fake milk powder"…….

    (i saw a news born baby was acid wash there in order to get money from public.. and many many more…….)//// copy cat land..is nice but scary place too

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  21. Zack Styler TurBo.. says:

    Hmm,I wonder why these Chinese people can copy bulat-bulat without being sued,even motorcycles from China are the same copy..Haha,like Honda EX5,they have Manja GX5..Conspiracy perhaps??Anyone can clarify on this??

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  22. Bob says:

    OMG, they suck. Cunning.

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  23. DAN says:

    copy this n that atlis better n not simply. every 1 also copy. it look like but not a same .

    it more a lase a same. s long value for money.

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  24. Zack Styler TurBo.. says:

    Dear DAN,

    u quote "it more a lase a same. s long value for money. "

    Ooops,let's me clarify it,not value for money,but WASTE OF MONEY!!!Use the vehicle for some time and u know what I mean..Problems here and there,even worse that POTONG!!!!Somemore no resale value,and I think like i am using Petaling Street fake items u know..Haha..

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  25. Initial D says:

    they copy so open oh , the honda 1 & laibao (come n hug?) 1, fuh, so direct. blind one oso can c the exterior tat's EXACTLY the same. wow, rili china G oso support tat piracy , no wonder CD piracy so rampant in china.!!!!! more terrible than M'sia!!!!!

    TAK BOLEH TEHEN (TAHAN) !!!!!!!!!!

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  26. MyBoy says:

    Damn copycat!!! :D

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  27. Alan says:

    Sigh….beggining phase was always difficuit..dont u all remember that Japan had one to be copycat for europe product before? anyway…!00 % copy ..mean not good. China should start thinking of it. People used dont know how many hours or months to figure out the design. But China only used few minute only for the design.

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  28. gegaoff says:

    yes indeed that china is copycat…

    but don't forget, Taiwan been a copycat for IT hardware, japan also copycat in lot of sectors… korean? copycat to japan's car industries…

    so, is a process… the main point here is, will they get what they want in order to get to another stage: fully development country?

    copy the good, took out the bad.

    cheers…

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  29. macspeed says:

    they copy benz c class n so many other cars some here still say good….hehehhehehe…malaysians i think no matter will kutuk own country even though some other counteries r even bad in this case China….

    they can even force them to set up company there huh? so keng….

    if malaysia had that policy we all sure kutuk kau kau….

    n back to design…..hyundai sonata? own design ke? cut n paste ……..

    so many other cars too……..n usually all cars in a category will almost look the same shape…cause that the dimension they have to follow too…….u wanna design a small car look like a sedan ah?

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  30. macspeed says:

    but surely we have to look at developed contires for strageties………of how they came up…..

    at least proud we dont copy…..(like those geely c class)

    like someone said…..u feed your baby fake milk powder also u dunno whtere its real product or fake……

    n besides they copy c class design or 7 series or any other cars for that matter………the quality same ah?

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  31. macspeed says:

    piracy in china is such that they sell fake goods as originals……here in bolehland at we boleh know that what is fake n what is ori….by the price..

    there those cunning fellows rip fortunes by sellign them as originals…….go to hell…..n china supporting them……what a good country…….make money good la….but not cheating like this….love to c the fake owner company giv the same milk powder to his son or his grandchildren

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  32. macspeed says:

    there was even a case in CHina recently….one fellow decide he owns the moon n start selling plots of land on the moon……..talk about greediness…….^&*#$%%% idiots…..

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  33. Initial D says:

    China is much worse than M'sia. what do ya think?

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  34. macspeed says:

    million times worse…..but sadly alot of people close eye….,………

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  35. PC says:

    good copy. If M'sia follow the step. Every M'sian can have better car then what we have now!

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  36. paradoxx says:

    atlease they changed CR-V to SR-V.. o_O

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  37. deutsche volks says:

    hmm..maybe they used rebatched transfer technology same like the 1 NAZA used for Kia..who knows.'…

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  38. Stevarac says:

    The only reason why all these foreign automotives set up their operation in China is bcause of their mega huge market mah!

    Think go to china can cut those chinaman throat , but kena play backside balik.

    I wonder when china start to produce "furrari & lambomimi " or maybe

    sawi & kangkong . argh !!!! shit them….

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  39. Pro-Tun says:

    Hahaha! This is hilarious!! Look at the rear wheel of SR-V compared to the CR-V. And the front wheel too! LOL!! No matter how much exactly they copied, they will always get it wrong! Bloody hell!!!

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  40. E-nabill says:

    simply accuse of piracy…wer got la…diff color wat !!

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  41. nohiddenagenda says:
    Reply Thumb up 0 Thumb down 0
  42. blackhead says:

    interesting article by nohiddenagenda, another western trying to discredit china's success, in fact they just afraid of this asian giant.

    through i dont really like china ppl's style but why should i like a western? lol

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  43. EDDIE FANS says:

    they r good

    Reply Thumb up 0 Thumb down 0
  44. DeCosby says:

    China will LEAD SOON… becareful

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  45. Man says:

    At the expense of their workers and environment.

    Reply Thumb up 0 Thumb down 0
  46. Xscape says:

    Mainlanders are Scumbags of the Universe, filthy disgusting neanderthals. Parasites of the civilized nations.

    Reply Thumb up 0 Thumb down 0
  47. Quit Smoking says:

    Man, they are REALLY sneaky motherforkers.

    Reply Thumb up 0 Thumb down 0
  48. biggie says:

    man,

    so true at the expense of worker & environment… for one country to talk about human rights.

    As a regular visiotor to china I'm saddened by wat happen there. Still remember choking with sadness agin and again at the treatment givent by my collegue to their lower ranking staff.

    Bu me work for rice bowl only so can look only lah.

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  49. Form 5 Student says:

    They're robber…….

    no wonder people said that the mainland chinese is very wicked…..

    At least no people right here do this thing….haha

    Reply Thumb up 0 Thumb down 0
  50. Nameless says:

    China produce world best photocopy machine, the car model copy out sure as original,sure precise.I dun know whether ppl from that country are all same face or not??

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  51. @ bong says:

    you guys kutuk so much of china, later if they do well…. malaysia might be the next copycat country. we all know japan did very well by copycating all the technologies from the west. at that time, who the h*ll know about copycating? it's only an issue, the result well tell

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  52. giganet says:

    sometimes i really wish Proton would copy some designs from other cars. their so-called original designs sucks.

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  53. Initial D says:

    create new technologies, M'sia lag behind Japan, US……….

    copy technologies, M'sia lag behind China……..

    what is M'sia leading? Good at starting a new international forum or dialogue?

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  54. damion says:

    there's most than just that model…

    they have copy models for almost everything…

    imagine this,

    old mercedes C Class front…

    coupled with an old golf rear…

    onto a mini chassis something like a saga (in size)….

    it's a ROC manufactured car…

    go figure..

    and i can properly attest to the super piracy statements..

    i've seen Toyota Hiace & 4/5 similiar chassis with other brands on it…

    and all the ROC made ones are more luxurious than the original Hiace..

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  55. my_YARIS says:

    even if u want to copy, do u have de technologies to do it? China has their look alike Pajero, own motorcycles & scooters. Engine by themselves. Our Modenas still using kawasaki leh..

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  56. honda_driver says:

    china doesnt design and build their own engines. their R&D facilities actually lag behind malaysias.

    When you copy so blatantly, you dont need to spend a lot on R&D.

    the japanese did reverse engineering. get something good from another country, take it apart, learn from it, and try and build a better one yourself. Thats not really copying.

    “furrari & lambomimi" now thats hilarious ;)

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  57. wth** says:

    what??? why with u people…when proton copy u guys kutuk2…speedometer for Gen2 too alfa romeoish, SRM looks so GM's waja is a mixed of many cars…but when china's car do that, a lot of u salute them…wth is happening to malaysians?? luv other's country product even it is fully copied from other…think about it again la wei…malaysia boleh…

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  58. [Half-Half PBâ says:

    frankly i dont like China allowing (or their ppl doing it) this copying thing… it's so… aiyah… we know how bad it is lah…

    but we still have malaysians who supports pirated cd, vcd and dvd… so what can i say about it?

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  59. Bob says:

    regarding people saying japan, korea also copycats. THINK

    copycat is ok. but china's is piracy. not copycat.

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  60. Adie lotry says:

    HEY….alll…don`t say that proton not good

    bangang la kamu ni…ada ka proton copy 100% kereta mitsubishi???? mana kamu taruh otak ooo…..mata kamu mana??? kamu tgk kereta cina ni…98.99% sama ngan crv

    tp bagus juga la…bole aku pakai crv Copy ni…..murah kn org mana tau saya pakai kereta cina…kalau saya tukar logo sama nama pigi honda mana org tau….cuma kalo mo bali ni kereta risiko nyawa la…sepa mau mati capat beli la…kamu ni org malaysia ka atau china??bila malaysia buat kereta kamu kutuk…tp bila china buat kereta adala yang cakap`they still learning la…they fast learning la…paga ka kamu ni???

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  61. Zoom says:

    China—> MY WAY or the High WAY.

    They can survive by their own. They don't need you.

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  62. my_YARIS says:

    honda_driver said,

    December 16, 2005 @ 8:54 am

    china doesnt design and build their own engines. their R&D facilities actually lag behind malaysias.

    > who said so? My customer were there. They did like wht u mentioned "the japanese did reverse engineering. get something good from another country, take it apart, learn from it, and try and build a better one yourself."

    >> the results, they got it cheaper in cost… Believe it or not, depends..

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  63. wth** says:

    let us do polls, so who said

    i) what china do is good type 1 and

    ii) what china do is bad type 2

    :)

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  64. Initial D says:

    2 la. if they dun stop it, virtually everything n anything foreign that reaches their hand will be copied 100% n jual in China at cheap price!!!!! So, which china ppl will buy foreign things? coz their own companies can produce the same thing too….hm….i mean exterior mainly.

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  65. revhead says:

    Just curious to what's powering the china version of the CRV? I was told it utilises solid axles(!)..?

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  66. kelisa_fans says:

    m'sia is expert copy VCD and DVD number 1 in the world

    Reply Thumb up 0 Thumb down 0
  67. ilovewasa says:

    Copy Old Models, Please!!!!!!!!

    Reply Thumb up 0 Thumb down 0
  68. Man says:

    I have a sony hifi made in China, in two years the CD and cassete player kaput, better buy hifi made in Malaysia.

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  69. Malaysia Sucks says:

    frankly i don't like chinese copying others works and claimed those are their efforts. this is no more copy, but steal!! but if i compare to the useless and unproductive malaysia, which don't has the ability even to copy….. sweat….embarassing…..

    Reply Thumb up 0 Thumb down 0

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