Auto Antitrust Offers Lessons for Rectifying the Construction Machinery Industry

2014-09-01 390 0人评论
       China's construction machinery industry has rolled out its first full-face rock tunnel boring machine, breaking a monopoly. Recently, the antitrust storm in the auto sector has intensified, with joint antitrust enforcement departments led by the National Development and Reform Commission striking fear into the automotive field. Luxury car brands such as Mercedes-Benz and Audi have been investigated, four BMW 4S dealerships in Hubei were fined more than 1.6 million yuan, and as antitrust investigations into vehicle sales and parts prices continued to deepen, record fines were announced last week. Last Wednesday, the NDRC announced a total of 1.2354 billion yuan in fines against 12 parts companies including Sumitomo, Hitachi and Nachi-Fujikoshi.
        The original meaning of monopoly is exclusivity, that is, only one operator in a market. Antitrust law is a legal system that opposes monopoly and protects competition. It is a basic legal system of market economy countries. The Anti-Monopoly Law of the People's Republic of China was adopted on August 30, 2007 and took effect on August 1, 2008.
        Whether for complete vehicles, spare parts or repair prices, imported cars and luxury cars are indeed on the high side, and antitrust action in the auto industry is imperative. The construction machinery industry has also long been said to be monopolized. Compared with the relatively mature auto market, the construction machinery industry, affected by factors such as industrial structure and macro policies, currently mainly faces technological monopoly. Domestic construction machinery technology lags behind, core components rely on imports, and the supporting system is weak. Auto antitrust offers lessons for the construction machinery industry's self-rescue; the current development situation is that China's basic industry lags behind and the quality of high-end products is inferior.
        Whether in the auto industry or the construction machinery industry, high-end products have always been monopolized by foreign brands, largely because of China's backward industrial foundation. Chinese industry has developed rapidly since reform and opening up, but it still lags far behind foreign countries, and the disadvantages of latecomers cannot be made up in a short time. The backwardness of industrial level directly leads to backward manufacturing processes, and the gap in product stability and precision is concentrated, especially in the high-end product field, where inferior quality is also expected.
        In recent years, the development of China's construction machinery industry has been remarkable. From the 20th century, when production needs were almost entirely met by imports, to today when China has become the world's largest manufacturer of construction machinery, the industry has faced numerous difficulties in technological upgrading. It has gone through imitation, technology introduction, digestion and absorption, and independent innovation, gradually building its own technology reserves, and the quality of its products has also improved rapidly. Today, domestic brands have not only broken the monopoly of foreign brands in the domestic market and compete on equal terms with foreign brands, but have also achieved large-scale exports, with remarkable results.
        Among them, in the 2014 Global Construction Machinery Manufacturers Top 50 ranking, 11 Chinese companies were listed. Among the top 10, three Chinese companies—XCMG, Zoomlion and Sany Heavy Industry—ranked 7th, 9th and 10th respectively.
        But it is worth noting that news frequently seen in machinery production and the construction machinery industry about Chinese construction machinery launching independently innovative products to break foreign monopolies is gratifying, yet it also reflects the fact that a huge technological gap still exists. If China is to transform from the largest country into a strong country, it will need more time and the joint efforts of more construction machinery enterprises and researchers, especially in core components, where breaking the technological monopoly is the most urgent task.

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