For foreign investment in China auto parts companies, April 1 by the National Development and Reform Commission issued a "Catalogue for the Guidance of Foreign Investment Industries (revised draft)" ("the draft"), so that they are on pins and needles.

    Draft said that key parts of new energy vehicles, foreign investment no more than 50%. This is the country's first new energy vehicles, key components of the joint venture equity ratio, made it clear that while this provision may be parts of the multinational companies in China have a profound impact throughout the industrial layout.

    This was designated as "key components" of many kinds, including battery, cathode material, separator, battery management systems, motor management systems, Electric control, drive motor, coupled drive system, electric air conditioning, electric brake, power steering, start and stop idle and so on.

    "These projects cover almost all aspects of the new energy automotive components, the key is that many parts of the Watson (blog) (microblogging) production plant, the original is not in accordance with the 'no more than 50%' of the shares to vote than built, this policy will allow a large number of foreign companies in China need to be adjusted equity ratio. "Recently, an international auto parts enterprises in China official said.

    Although the new energy automotive industry and its components is currently the hot investment, but most of the cross-parts business and will not be "fresh start" to re-form a new company, more is invested in the original business in China based on the increase of new products, new business. However, the provisions of the new share ratio, it may lead to collective change in capital structure of these enterprises.

    "For example, from the draft provided for the idle stop system, in fact, with the engine management system (EMS) are combined, if we say that this part belongs to new energy, that are traditional cars, real difficult to separate, so do than the division of shares is clearly too wide ramifications. "components, a multinational company executives said.

    In fact, apart from the idle stop system, including the trip computer (ECU), electric power steering (EPS), drive motor, etc., has been widely used in conventional vehicles, and has been in the international auto parts enterprises in the large-scale factories in China production, investment in shares than if the provisions for the people will have a great impact.

    The engine management system, for example, including Delphi, Continental, Bosch, Denso will be affected. Among them, the Continental, Delphi, Denso are listed companies. Its subsidiary in China's equity ratio change will have significant impact on listed companies.

    "In accordance with foreign accounting standards for listed companies, if the stock is less than 50%, it can not consolidated statements of income means that most of China is not reflected in the Corporation's financial statements, which have tremendous impact on multinational corporations . "company executives said that the aforementioned cross-border components.

    By Bosch, for example, its 2010 sales in China reached 37.3 billion, accounting for 9% of the world, if the auto parts business relationships can not be compared because the shares of listed companies are included, the global performance will be greatly affected.

    Meanwhile, the Chinese business is not included in the financial statements of listed companies may lead to two situations: First, multinational companies may gradually reduce the intensity of investment in China; Second, the original joint venture for the key technologies, new product launch, but also will adopt a conservative attitude. "In a business which they can not control the delivery of new technologies and new products, it is for multinational companies to think twice, after all, control of this enterprise has not in the hands."

    "The market did not change to technology, we hope to split into two terms, first of all, equity ratio requirement does not help Chinese enterprises to learn and master new technology is not conducive to foreign companies launch new technologies in the country; Secondly, the Chinese automobile industry much shorter history, we walked the 20 years the way foreign companies 100 years, but may be short of 10 years, 15 years to catch up, this increase can not be hurried. "a senior automotive commentator, told reporters.