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And we’ll get through it: why Russia isn’t needed for China’s auto industry

  • September 13, 2023
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A year and a half has passed since the beginning of the “Chinese” auto expansion into Russia. However, no significant progress has been made in the strategy of

A year and a half has passed since the beginning of the “Chinese” auto expansion into Russia. However, no significant progress has been made in the strategy of our eastern partners for such a long period. From this, the AvtoVzglyad portal draws the logical conclusion that they still do not seriously intend to gain a foothold in the conquered territory and open their own production facilities in our country.

Just over a hundred years ago, the great philosopher Nikolai Berdyaev wrote: “The Russian people are a great, but sinful people, full of weakness and temptations. And the expectation of a social miracle is one of the weaknesses of the Russian people, one of its greatest temptations.” If the author of the original concept of the “New Middle Ages” were lucky enough to live to this day (for us, by the way, given our current lack of fish, this would also be lucky), he would understand that the The expectation of a miracle exists among the Russian people, not only in the social sphere. For example, in the car industry we also want ‘the strange’, which makes us easily fall for any temptation.

Don’t make yourself an idol

It seems that, constantly bumping into a rake, it was time to find a safe path and deeply engage in cultivating domestic industry on domestic soil. But no. In the early 1990s they clearly explained to us that it was not our job to produce cars ourselves. We believed in this so fervently that we began to turn our eyes in all directions, from where, it seemed to us, a miracle could come.

But if for our ancestors the source of happiness was the Lord, then we were drawn to more earthly givers of good. America, Europe, Japan, Korea – they all came here and disappeared overnight, without leaving significant material traces in the Russian automotive industry. However, the disappointments we experienced have not served us well.

Instead of scratching our bruises and coming to our senses, we found a new idol: the Chinese auto industry. And they began to believe in him – fervently, as befits neophytes of a new religion. Although it was clear at first that there was nothing to catch here. Unlike our officials, who only wanted to benefit from the financial flows, Chinese government officials set a different goal: to create and strengthen an independent domestic auto industry by attracting foreign investment and advanced technologies to the country. And as we can now observe with pleasure, they succeeded.

With thoughts on secondary sanctions

Charity (which includes the construction of all kinds of factories abroad) is not included in the plans of Chinese friends. They can only be lured by indisputable financial benefits, but this, in turn, is not included in the plans of our “economists”. Moreover, the Chinese only state that they reject external pressure, but are very uncomfortable at the thought of the possible use of secondary sanctions by the United States in full force. So they are in no hurry to seriously enter Russia.

The portal “AvtoVzglyad” recently wrote that the monsters of the Chinese automotive industry smoke modestly on the sidelines, and so far only brutal little things from the Middle Kingdom are introduced into the domestic industrial environment. However, she also sees no prospects for herself in Russia beyond the simplest screwdriver assembly and for the most part condescendingly ignores all demands from our government agencies to increase localization.

In case of trouble

And recently, on September 11, a new confirmation of the obvious conclusion of the experts of our portal came from distant Vladivostok. At the Eastern Economic Forum, the President of the Russian Automobile Dealers Association (ROAD), Alexey Podshchekoldin, said the following about Chinese car manufacturers: “Today they do not want to enter into long-term dealer agreements, they literally enter into agreements for a certain period of time. year there were even appointments for three months.”

In other words, even the companies that are exclusively involved in bare exports are being very cautious. If something happens, they are prepared to immediately curtail cooperation with Russian counterparts and go home without suffering any financial damage.

Photo from the portal “AvtoVzglyad”.
Photo globallookpress.com

Just over a hundred years ago, the great philosopher Nikolai Berdyaev wrote: “The Russian people are a great, but sinful people, full of weakness and temptations. And the expectation of a social miracle is one of the weaknesses of the Russian people, one of its greatest temptations.” If the author of the original concept of the “New Middle Ages” were lucky enough to live to this day (for us, by the way, given our current lack of fish, this would also be lucky), he would understand that the The expectation of a miracle exists among the Russian people, not only in the social sphere. For example, in the car industry we also want ‘the strange’, which makes us easily fall for any temptation.

Don’t make yourself an idol

It seems that, constantly bumping into a rake, it was time to find a safe path and deeply engage in cultivating domestic industry on domestic soil. But no. In the early 1990s they clearly explained to us that it was not our job to produce cars ourselves. We believed in this so fervently that we began to turn our eyes in all directions, from where, it seemed to us, a miracle could come.

But if for our ancestors the source of happiness was the Lord, then we were drawn to more earthly givers of good. America, Europe, Japan, Korea – they all came here and disappeared overnight, without leaving significant material traces in the Russian automotive industry. However, the disappointments we experienced have not served us well.

Instead of scratching our bruises and coming to our senses, we found a new idol: the Chinese auto industry. And they began to believe in him – fervently, as befits neophytes of a new religion. Although it was clear at first that there was nothing to catch here. Unlike our officials, who only wanted to benefit from the financial flows, Chinese government officials set a different goal: to create and strengthen an independent domestic auto industry by attracting foreign investment and advanced technologies to the country. And as we can now observe with pleasure, they succeeded.

With thoughts on secondary sanctions

Charity (which includes the construction of all kinds of factories abroad) is not included in the plans of Chinese friends. They can only be lured by indisputable financial benefits, but this, in turn, is not included in the plans of our “economists”. Moreover, the Chinese only state that they reject external pressure, but are very uncomfortable at the thought of the possible use of secondary sanctions by the United States in full force. So they are in no hurry to seriously enter Russia.

The portal “AvtoVzglyad” recently wrote that the monsters of the Chinese automotive industry smoke modestly on the sidelines, and so far only brutal little things from the Middle Kingdom are introduced into the domestic industrial environment. However, she also sees no prospects for herself in Russia beyond the simplest screwdriver assembly and for the most part condescendingly ignores all demands from our government agencies to increase localization.

In case of trouble

And recently, on September 11, a new confirmation of the obvious conclusion of the experts of our portal came from distant Vladivostok. At the Eastern Economic Forum, the President of the Russian Automobile Dealers Association (ROAD), Alexey Podshchekoldin, said the following about Chinese car manufacturers: “Today they do not want to enter into long-term dealer agreements, they literally enter into agreements for a certain period of time. year there were even appointments for three months.”

In other words, even the companies that are exclusively involved in bare exports are being very cautious. If something happens, they are prepared to immediately curtail cooperation with Russian counterparts and go home without suffering any financial damage.

Source: Avto Vzglyad

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