Nine ministries brewing relevant policies to promote the merger and reorganization of the automotive industry

Recently, the reporter learned that nine ministries and commissions including the National Development and Reform Commission, the Ministry of Finance, the State-owned Assets Supervision and Administration Commission and the China Securities Regulatory Commission are brewing relevant policies to promote the merger and reorganization of eight key industries such as steel, automobile, cement and machinery manufacturing.

According to reports, the inter-ministerial coordination group of the State Council’s corporate merger and reorganization team recently convened a meeting of heads of member institutions. This year and next year are the critical period for the restructuring of the eight industries. The State Council requires the introduction of targeted policies to accelerate the speed of mergers and restructuring of enterprises. The inter-ministerial meeting clearly identified five important tasks for promoting mergers and acquisitions in the next phase: First, it must firmly establish the orientation of the company as the main body, give full play to the role of the inter-ministerial coordination mechanism in the merger and reorganization of enterprises, and gradually establish a coordinated solution to the problem. Mechanisms to help enterprises coordinating and solving outstanding problems; second, research on the introduction of guiding opinions on the merger and reorganization of enterprises in key industries, and strengthening the guidance and services for the merger and reorganization of enterprises in key industries; and thirdly, in accordance with the State Council’s work arrangement for the promotion of mergers and acquisitions of enterprises, and for mergers and acquisitions of enterprises. The fourth issue is to fully implement the role of local governments in promoting corporate mergers and reorganizations, strengthen organizational leadership, improve policies and measures, and form a corporate merger and reorganization mechanism that is coordinated by central and local governments; Fifth, efforts will be made to build a corporate merger and reorganization public information service platform.

It is understood that at present, China’s industrial economic structure has problems of low industrial concentration, small and scattered enterprises, and low level of socialization and specialization. This has resulted in inefficient allocation of resources, repeated research and development, repeated construction and other outstanding issues. It is very urgent to further promote mergers and reorganizations.

According to statistics, there are currently more than 1,300 vehicle manufacturers of various types in China, of which there are 171 auto vehicle companies, 120 motorcycles, 900 special-purpose vehicles, 135 tricycles and 135 low-speed trucks. The Ministry of Industry and Information Technology believes that among the more than 1,000 companies, there have been a number of companies that have been in production or semi-discontinued for many years. The output is very low or even without output, and survival is very difficult. Compared with the foreign auto industry, China's auto industry presents a small, weak, scattered characteristics.

According to reports, the National Development and Reform Commission will strengthen mergers and reorganizations in the automotive industry and eliminate backward industry requirements when formulating and improving specific plans for key industries. It will take mergers, acquisitions, and backwardness as the prerequisite for the approval of new projects and continue to strengthen the technology of mergers and reorganizations. The support for the transformation will support qualified companies to establish technology centers to eliminate backward production capacity through mergers and acquisitions.

According to reports, in the next phase, the SASAC will strengthen the guidance and regulation of mergers and reorganizations of central enterprises and further standardize mergers and acquisitions of enterprises. In particular, SASAC will make great efforts to remedy the problems of unclear development strategies, blindly pursuing scale mergers and acquisitions, insufficient capacity for cross-border mergers and acquisitions, failure to achieve effective integration after mergers, and insufficient effectiveness of reorganization. At the same time, in-depth reorganization and integration of central enterprises, around the central enterprises to adjust the development approach, strengthening and excellence, and foster the overall goal of the world's enterprises, continue to promote a group of companies that are not in important industries, and the scale is relatively small, and the efficiency is poor. Finally, we will continue to strengthen support for corporate mergers and reorganizations, and gradually adjust and improve performance assessments and state-owned capital expenditures.

The relevant person in charge of the Industry Coordination Department of the National Development and Reform Commission stated: “From the current perspective, cross-industry, cross-regional, and cross-ownership mergers and acquisitions are more difficult. Therefore, in the process of mergers and reorganizations, we must handle all aspects of the central government, enterprises, and localities. relationship."