A worker checks car parts at a manufacturing plant in Shanghai. (Photo : Reuters)
The Development Research Center of the State Council, together with the Society of Automotive Engineers of China and Volkswagen Group China, has released this year’s China Automotive Industry Development report on Aug. 31, the China Daily reported.
The report, also known as the 2015 Auto Blue Book, said that the administrative mechanism of the country's auto industry needs to be upgraded.
The Blue Book contained the governing system for the industry and reviewed the history of reform in managing the country's auto industry, as well as lay down proposals for structural reform for system upgrade.
Jointly drafted by the Development Research Center of the State Council, the Society of Automotive Engineers of China and Volkswagen Group China, the report called for further reforms and proposed 10 measures. It also provided ways on how the government can enhance the efficiency of management over the sector.
Volkswagen Group China Executive Vice President Zhang Suixin noted that the fundamental concepts used 21 years ago were still maintained by the current management system, which restrains investment and restrict entry that causes problems to the industry.
"Existing and emerging problems weren't solved, although we considered them for a long time. The necessity of reform stands out at this moment when auto market growth is slowing," Liu Shijin, former deputy director of the Development Research Center of the State Council, said.
Liu stressed that since a new industrial revolution is happening in the auto industry, the industry must focus on innovation, industry entry and exit as three major aspects for management structure reform.
He added that the governing system must adopt to disruptive technology changes to accelerate sustainable and healthy development of the industry.
"If these problems are left unsolved, they will influence the automotive industry's future development in China. The industry's development is not only about quantitative growth, but more about restructuring, better quality and stronger competency," Liu said.
"Some policies made by government agencies are themselves unlawful. They neither passed State Council discussion, nor followed the government administrative system," Fu Yuwu, secretary-general of the Society of Automotive Engineers of China, said.
