According to South Korean media reports, Chinese President Xi Jinping paid a two-day visit to South Korea on the 3rd to 4th of this month. As the world's largest automobile producer and consumer, China's auto industry has always placed high hopes on the Chinese market. How much benefit does President Xi’s visit to Korea bring to the Korean auto industry? Alloy Steel Pipes are mainly used for high-pressure and high-temperature pipelines and equipment such as power plants, nuclear power, high-pressure boilers, high-temperature superheaters and reheaters. They are made of high-quality carbon steel, alloy structural steel and stainless heat-resistant steel. , by hot rolling (extrusion, expansion) or cold rolling (drawing). Alloy Steel Pipe,Alloy Steel Pipes,Alloy Steel Tube,Alloy Steel Tubes,Steel Tubes Shandong Rizhaoxin Metal Products Co., Ltd. , https://www.rizhaoxinsteel.com
Hyundai Motor and Kumho Tire Factory Problem Hyundai Motor selected China's western center “Chongqing†as the base of the fourth plant. It has been promoting the construction of the plant for several years, but the project has not been approved by the Chinese government. , has been in an interrupted state. The Kumho Tire Nanjing Plant was also ordered to relocate due to the improvement of the urban environment. Now the company is negotiating with the Nanjing Municipal Government about the relocation costs. According to this, on the 4th, Hyundai Motor President Zheng Mengjiu and President of the Kumho Asiana Group Park Sanqiu asked Mr. Xi for a solution to the problem at the forum.
It is reported that President Xi did not give a positive answer to individual questions at the meeting. After the meeting, President Zheng Mengjiu and Park Sanqiu did not accept interviews from reporters, but left the scene directly. According to another person familiar with the matter, President Xi mentioned only some principled issues at this symposium and did not create too many "surprise".
But at least President Xi has a certain understanding of the relevant events. Hyundai Motor and Kumho Tire have been actively carrying out various activities in China. If we can take this into consideration, the Chinese government will give satisfactory answers as soon as possible even if it cannot make the best decision.
Signing of the China-South Korea Free Trade Agreement (FTA) It is reported that negotiations on the China-South Korea Free Trade Agreement (FTA) are also underway. On the 3rd, South Korean President Park Geun-hye and President Xi mentioned at the formal talks that the two countries should work hard to sign the China-South Korea free trade agreement and achieve regional economic cooperation at an early date.
The conclusion of the China-South Korea Free Trade Agreement means that the tariffs on automobile imports and exports will be reduced or cancelled in the future, and the Korean auto industry will benefit from it. Most of the cars sold by Hyundai-Kia Motors Group in China are produced locally in China, but there are still about 100,000 medium- and high-class cars that are produced in Korea and then exported to China. For Ssangyong Motor, which has been unable to expand its market due to tariff barriers, this is undoubtedly a good news. Similarly, Korea GM and Renault Samsung will also open the road to export to China according to the instructions of the head office (GM and Renault Group). Not only that, but some small and medium-sized auto parts companies will also target the Chinese market and seize opportunities.
However, unlike the FTAs ​​signed with the United States and Europe, the effects of the China-South Korea Free Trade Agreement are likely to be limited. The reason is that most of China's provinces are dominated by Chinese-foreign joint venture auto companies, and it is difficult for Korean automakers to enter China directly. Therefore, Hyundai Motor also plans to produce advanced models such as Jenns and Equus directly in the fourth plant in China.
In the long run, Chinese car companies are more likely to enter the Korean market. Although Chinese car companies cannot capture the domestic car market in a short period of time, Chinese car companies can enter the soft-sole part of Korean car companies – commercial vehicles or small cars – with their price advantage.
Relevant people in the Korean auto industry said, "China is the world's largest auto market. If all the tariff barriers to China are gone, this is undoubtedly a good news for auto companies." "The competition in the Chinese market will become more and more important in the future." Intense, we have to make good use of this opportunity."