Commentary: How to Remake the Carmaker-Supplier Relationship
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As the auto industry is highly integrated and has long supply chains, its development depends on close coordination between carmakers and their suppliers.
Beijing has consistently emphasized the importance of remaking the carmaker-supplier relationship to ensure the industry’s progress and stability.
In 2017, the Ministry of Industry and Information Technology and several other government agencies jointly issued a development plan for the auto industry. Under this plan, carmakers and suppliers were encouraged to build technological innovation alliances to share costs and benefits. Leading carmakers and suppliers were also encouraged to deepen collaboration in research and development (R&D) and procurement.
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- China's government promotes deeper carmaker-supplier collaboration, technological alliances, and ecosystem coordination to enhance auto industry competitiveness, especially for NEVs.
- Key recommendations include joint R&D, risk and cost-sharing, mutual trust, transparent communication, fair procurement, and protection of intellectual property.
- Foreign carmakers in China are encouraged to expand supply chain partnerships overseas to support global expansion.
- 2017：
- The Ministry of Industry and Information Technology and several other government agencies jointly issued a development plan for the auto industry, encouraging carmakers and suppliers to build technological innovation alliances and deepen collaboration in R&D and procurement.
- 2020：
- The State Council released a 15-year development plan for the new-energy vehicle (NEV) industry, encouraging upstream and downstream companies to empower each other to build a globally competitive NEV industry chain.
- 2025：
- The industry is expected to pivot toward smart connected electric vehicles. Carmakers are advised to act as ecosystem coordinators, deepen engagement with suppliers, establish new ecosystem alliances, hold regular meetings, optimize R&D collaboration, enhance cost and quality control mechanisms, and globally expand supply chains.
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