Showing posts with label automotive. Show all posts
Showing posts with label automotive. Show all posts

Friday, August 30, 2024

China’s EV industry is looking good, domestically and internationally – Arthur Kroeber

 

Arthur Kroeber

China’s electric car makers are doing pretty well, certainly domestically and – perhaps except the US – also internationally, says leading economist Arthur Kroeber, author of China’s Economy: What Everyone Needs to Know. Excess capacity seems mainly a problem for traditional car makers, as demand for EV vehicles is only picking up. Internationally EV makers might face some restrictions, but they seem able to manage those, Kroeber adds in a debate organised by the Asia Society.

Arthur Kroeber is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Get in touch or fill out our speakers’ request form.

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Wednesday, September 29, 2021

How China deals with smart cars – Mark Schaub

 


Mark Schaub

China has issued a wide range of new rules on cybersecurity, data exchange, and consumer protection that will define the development of smart cars, says China-lawyer Mark Schaub in an extensive analysis of the recent regulations, at Lexocology.

Mark Schaub:

China has established its main legal regime in regulating cybersecurity, data security and personal information protection with the promulgation of Cybersecurity Law, the Data Security Law and PIPL. Smart cars will be collecting, processing and transferring data at levels previously undreamt of. However, such activities will prove to be a great challenge to the Chinese regulators. Following the effectiveness of the Data Security Law, the PIPL and the Management Provisions, we expect to see enforcement against some major players to make it clear that China will enforce data security and personal information protection. Companies that will be affected should consider the following: (1) Consider data security issues in the process of designing, producing, selling, operating, maintaining and managing cars, and reduce the amount of data collected and stored in car to the greatest possible extent.(2) While using big data for commercial operations, safeguard the users’ right to know and implement technical safeguards to desensitize and anonymize data, as well as preventing misuse or unauthorized third-party access.(3) Multinational companies or Chinese companies with R&D centers outside China should consider implementing localized storage as soon as possible by establishing data centers within China and enhancing local R&D capabilities in China.(4) Finally, companies would be well advised to conduct a systematic review and assessment of the current state of their data handling. Business operations that clearly do not comply with the requirements of the Management Provisions should be adjusted in a timely manner.

More at Lexocology.

Mark Schaub is a speaker at the China Speakers Bureau. Do you need him at your (online) meeting or conference? Do get in touch or fill in our speakers’ request form.

Are you looking for more articles by Mark Schaub on different subjects? Do check out this list.

Thursday, May 27, 2021

Data security rules for the automotive industry – Mark Schaub

 

Mark Schaub

China’s legislators have set another step in regulating data security, this time for the automotive industry, by publishing a draft for comments. China-lawyer Mark Schaub gives an overview of the plans for the China Law Insight. “Companies would be well advised to conduct a systematic review and assessment of the current state of their data handling,” he concludes.

Mark Schaub:

China has continuously strengthened legislation and regulation on cybersecurity, data security and protection of personal information protection.

Automated driving and smart cars will be a major challenge to the Chinese regulators. Smart cars will be collecting, processing and transferring data at previously undreamt of levels. The authorities will need to balance the convenience of automated technology against cybersecurity and privacy concerns. China is accelerating its pace of promulgating laws, regulations, policies and standards to nurture the intelligent vehicle industry but at the same time have in place regulations to ensure such technologies are safe.

The Draft strengthens the protection of personal information and secures data in China’s automotive industry.

However, we believe that some provisions of the Draft require clarification and there is also room for improvement as to how the Draft fits in with other laws. Big data is an important basis for the rapid development of self-driving cars and China’s automotive industry but a balance must be struck between technological innovation and data security. [2]

The Draft will affect almost all players engaged in the automotive industry. Companies that will be affected should keep a close eye on the legislative process of the Draft and start making preparations now to minimize disruption to their operations. In particular:

  • Consider data security issues in the process of designing, producing, selling, operating, maintaining and managing cars, and reduce the amount of data collected and stored in car to the greatest possible extent.

  • While using big data for commercial operations, safeguard the users’ right to know and implement technical safeguards to desensitize and anonymise data, as well as preventing misuse or unauthorized third-party access.

  • Multinational companies or Chinese companies with R&D centres outside China should consider implementing localized storage as soon as possible by establishing data centres within China and enhancing local R&D capabilities in China.

  • Finally, companies would be well advised to conduct a systematic review and assessment of the current state of their data handling. Business operations that clearly do not comply with the requirements of the Draft should be adjusted in a timely manner. The companies should also consider formulating internal mechanisms and systems that comply with the Draft as soon as possible. Although the Draft has not come into force it is a clear indication of the Chinese authorities’ intent and clear direction as to where the policy is going.

More at the China Law Insight.

Mark Schaub is a speaker at the China Speakers Bureau. Do you need him at your (online) meeting or conference? Do get in touch or fill in our speakers’ request form.

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Thursday, April 22, 2021

How China starts facilitating sales of autonomously driving cars – Mark Schaub

 

Mark Schaub

Selling cars in China has been notoriously difficult because of stringent regulations. Mass production of autonomous cars will only be possible when the government paves the legal way for those cars, and just that is happening, writes China lawyer Mark Schaub at the China Law Insight.

Mark Schaub:

China has accelerated its promulgation of laws, regulations, policies and standards related to autonomous cars in 2021. The Draft Admission Guide coupled with the Draft Regulations of Shenzhen Special Economic Zone on the Administration of Intelligent and Connected Vehicles for public comments and the Draft Proposed Amendments of the Road Traffic Safety Law issued by the Ministry of Public Security of China indicate that law makers are seeking real life solutions to the soon to be reality of autonomous cars.

The Draft Admission Guide sets out a commercial case for autonomous cars as it sets admission conditions for autonomous cars and their manufacturers. These requirements understandably centre on the core issues of safety and security. Further, and underscoring safety concerns, at present the authorities are only considering mass production of Level 3 and Level 4 autonomous cars in China. Level 5 autonomous cars are expected to be some way down the track.

More details at the China Law Insight.

Mark Schaub is a speaker at the China Speakers Bureau. Do you need him at your (online) meeting or conference? Do get in touch or fill in our speakers’ request form.

Are you looking for more strategic experts at the China Speakers Bureau? Do check out this list.

Friday, April 09, 2021

How China moves on legislation on autonomous driving cars – Mark Schaub

 

Mark Schaub

China is moving fast on setting up legislation on the development of autonomous driving cars in China, in tandem with the fast technological and commercial developments, writes China-lawyer Mark Schaub in the China Law Insight. These detailed regulations will have a significant and positive impact on the industry, he adds.

The China Law Insight

The Ministry of Public Security Draft Proposal and the Shenzhen Draft for Public Comments mark the first step in China’s legalisation specifically for autonomous cars. These regulations will have a significant and positive impact on the development of autonomous cars in China.

Their provisions on liability will directly impact the development of technologies and business models for autonomous cars in China as well as requiring changes in how contractual arrangements between automated driving system developers and carmakers are made.

Despite the positive elements it should be noted that much is left to be clarified and there are already issues in respect of how to ensure consistency between laws. The classification of autonomous cars in the Shenzhen Draft Regulations seems to differ from that outlined in the MPS Proposed Amendments.

The term “autonomous cars equipped with drivers” in the Shenzhen Draft Regulations and the term “autonomous cars equipped with automated driving functions and manual operation modes” in the MPS Proposed Amendments seem to both primarily refer to conditionally automated vehicles (i.e., level 3). However, the two terms are expressed differently and the responsible party for traffic violations and liability also differ. While the MPS Draft Amendments identifies the responsible party to be the driver or the automated driving system developer, the Shenzhen Draft Regulations defines the responsible party to be the driver, manufacturer or distributor. The question of how to maintain consistency on liability for traffic violations or accidents of autonomous cars in the legislations may be an important consideration in the subsequent revision of these pieces of draft legislation.

Although the relevant provisions of the MPS Proposed Amendments and the Shenzhen Draft Regulations are still in draft form (and therefore the final official versions are likely to undergo significant amendment), the two drafts will undoubtedly directly drive China’s legislation in the field of autonomous cars and therefore have a profound impact on the commercialization of autonomous cars in China.

More at the China Law Insight.

Mark Schaub is a speaker at the China Speakers Bureau. Do you need him at your (online) meeting or conference? Do get in touch or fill in our speakers’ request form.

Are you looking for more strategic experts at the China Speakers Bureau? Do check out this list.

Monday, March 01, 2021

China’s fast-track for self-driving startups – Mark Schaub

 

Mark Schaub

China’s automotive industry has traditionally taken a backseat compared to global competitors, but is planning a major overtake when it comes to pushing startups on self-driving, says China lawyer Mark Schaub in the Asia Nikkei. “In China, if you always wait till the law comes into effect, you are six months to a year behind what the regulators are saying,” Schaub said.

The Asia Nikkei:

Analysts see authorities’ willingness to allow aggressive experiments for new technology as a major advantage in China’s fierce competition with the U.S. for the most advanced autonomous driving technology, which many believe will change the automobile industry.

“China missed out on manufacturing top quality cars. The industry is being transformed … Chinese policymakers are very keen to be the first and best doing autonomous driving,” said Mark Schaub, a tech industry lawyer and partner with law firm King & Wood Mallesons.

China has grown to be the world’s largest car market and produces tens of millions every year. But few domestic automakers have mastered the core technologies for combustion-engine cars, an area led by the U.S., Japan and Germany. China’s most popular cars have often been produced through joint ventures with leading foreign automakers such as Volkswagen, General Motors and Toyota.

China wants to turn the tables with autonomous driving technology, which would also transform taxis, buses, trucks and delivery vehicles. China’s target is for vehicles with at least partial self-driving functions to account for 50% of new auto sales in five years, according to a blueprint published by a government research body in November…

Beijing, Guangzhou and Changsha appear to be among the more aggressive promoters of autonomous driving. They allow self-driving vehicles to be tested with remote support rather than a human driver. But none of these cities has allowed fully autonomous driving, where both remote controls and backup drivers are removed.

“In China, if you always wait till the law comes into effect, you are six months to a year behind what the regulators are saying,” Schaub said. Unlike most Western countries where authorities enforce the strict letter of the law, he said, there is a lot of discretion in China.

The regulatory approach is expected to put foreign players at a disadvantage in competing with local players in the age of autonomous driving, because “Chinese companies know better how to navigate the legislation and the laws,” he said.

More in the Asia Nikkei.

Mark Schaub is a speaker at the China Speakers Bureau. Do you need him at your (online) meeting or conference? Do get in touch or fill in our speakers’ request form.

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Please

Wednesday, March 04, 2020

China's big plan for autonomous vehicles - Mark Schaub

Mark Schaub
Every crisis offers an opportunity and China is pushing ahead with its plans to develop autonomous vehicles, as the car market is in the doldrums. China lawyer Mark Schaub summarizes the effect of the country's plans for the future at the China Law Insight. 

Mark Schaub:


The world’s auto market is in the doldrums and China, as the world’s largest auto market, has suffered almost two-years of starkly declining sales and now the novel coronavirus (COVID-19) epidemic has crashed the already anemic sales. 
The automotive sector has been heading for disruption for some time now. The virus outbreak may have pushed matters further. China signaled its intention to play a key role in the development of autonomous vehicles when on 24 February 2020 eleven central level Chinese governmental departments jointly issued the Strategy for Innovation and Development of Intelligent Vehicles (the “Strategy”). 
The Strategy sets forth a blueprint as to how the Chinese government will boost the development of autonomous vehicles over the next thirty years... 
The Strategy has been warmly welcomed by the market in China. 
The Strategy lays out a comprehensive and detailed plan for the development of autonomous vehicles in China. China clearly recognizes the advantages it has in data, market, technology innovation, infrastructure and environment to build an autonomous car manufacturing titan. The Strategy also recognizes and seeks to address some of China’s disadvantages – restrictions on mapping and slow changes to relevant laws. 
Black swan events are unforeseen and unexpected. An unexpected result of the virus outbreak is that the inevitable disruption and move to autonomous new energy cars will be sped up. An already weakened traditional auto sector may find it has no choice but move to new technologies.
More at the China Law Insight.

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Monday, May 27, 2019

Capturing the fast changing business models - William Bao Bean

William Bao Bean
Major industries like travel, retail, automotive, telecom and others see their traditional business models changing very fast. At Shanghai-based SOSV managing director William Bao Bean helps startups to make money in new ways, based on data, and capture fast emerging markets, he tells at the Phocuswright Europe conference in Amsterdam last week. Companies should not cling to melting margins, but identify where money can be made, he argues.

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Monday, July 23, 2018

Auto industry: the effect of disappearing foreign restrictions - Mark Schaub

Mark Schaub
China is going to phase out restrictions on foreign ownership of the automotive industry over the next five year, president Xi Jinping announced earlier this year. Shanghai-based lawyer Mark Schaub summarizes the effects on the industry for the China Law Insight.

Mark Schaub:
The automotive sector is facing the twin disruptions of new energy and autonomous cars. 
It is eye-catching that one of the major initiatives to further open up China’s economy announced by President Xi Jinping at the Boao Forum on 10 April 2018 was large scale relaxation of foreign investment restrictions in the auto sector. 
Shortly after President Xi’s announcement the National Development and Reform Commission (NDRC) revealed that foreign ownership limits on automakers would be phased out over a 5-year transition period which would start on 17 April 2018. 
According to NDRC, foreign ownership restrictions on special-purpose vehicles and new energy vehicles (NEVs) will be removed in 2018. The liberalization will be followed by commercial vehicles in 2020 and passenger cars in 2022. The rule that currently prohibits foreign automakers from setting up more than two joint ventures in China will also be lifted in 2022. After the 5-year transition period, all restrictions on foreign investment in auto sector will be removed. 
These policies were swiftly followed by regulatory action and on 28 June 2018, NDRC and the Ministry of Commerce (MOFCOM) jointly issued the Special Administrative Measures for Admittance of Foreign Investment (Negative List) (2018) (“2018 Negative List”)[1] which is due to take effect from 28 July 2018.[2] 
The 2018 Negative List confirmed the pledge to fully remove foreign investment ownership limits on auto industry over a 5-year transition period. 
In addition to making it easier for international companies to sell more cars to China the government has also significantly lowered import tariffs for vehicles. Starting 1 July 2018 import tariffs on autos were reduced to 15% from 25% and auto parts will be subjected to 6% tariffs. 
The relaxation on foreign ownership restrictions should open up China’s auto industry and for this reason it may have a major impact on domestic and international OEMs alike.
More at the China Law Insight.

Mark Schaub is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

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Monday, June 04, 2018

China's policy change of its automotive industry - Mark Schaub

Mark Schaub
China has not only been leading the way to develop self-driving cars, it has also been are the forefront of legal changes needed to allow those cars into society. The Shanghai-based lawyer Mark Schaub gives an overview of the new regulations the government has been introducing at the China Law Insight.

Mark Schaub:
China is embarking on bold moves to re-shaping its auto industry policy. This follows recent announcements in relaxation of key restrictions on foreign investment in the auto sector. 
The National Development and Reform Commission (NDRC) is the body tasked in China with laying the direction for industrial policy. On May 17, 2018 the NDRC circulated the draft Administrative Rules on Auto Industry Investment (“Draft Rules”) to local governments and industry stakeholders for comment. The Draft Rules when passed will replace the current car industry development policy that has been in place since 2004. 
In short the Draft Rules reform the China approval system for auto investment projects by delegating more authority to local governments, expressly prohibit any new production capacity for fossil-fuelled vehicles and raise the threshold for establishing electric vehicle manufacturing companies. 
The Draft Rules set 25 May 2018 as the deadline for feedback from local governments and industry participants.   Accordingly a tight timeline and sorry if you missed it! This does, however, hint that feedback will be limited and that NDRC has clear ideas as to the direction it intends to take. Generally, longer feedback periods are granted... 
The Draft Rules continue and extend existing policies in place. 
On the one hand China has announced relaxation of restrictions on foreign investment in auto sector with a 5-year transition plan and also reducing import tariffs on autos to 15% from 25% and on auto parts to 6%. 
On the other hand China is clearly putting in place policies to allow it to have a strong domestic auto market in which it will compete head to head with international competitors. This future competition will be in respect of NEVs and autonomous cars. 
The Draft Rules are expected to be officially issued within 2018 but their impact on the China’s auto industry will reach into the next decade.
More at the China Law Insight.

Mark Schaub is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more experts on China's innovation? Do check out this list.  

Wednesday, June 14, 2017

New technology is not enough to sell cars - Tom Doctoroff

Tom Doctoroff
Lynk & CO and NIO both launched their first production models at the Shanghai auto show in April, but the question is whether new technology is enough to sell their cars. Branding expert Tom Doctoroff says to Wardsauto that the newcomers on this market need a bit more to succeed.

Wardsauto:
It won’t be easy for the startups to use customer experience to brand themselves, says Tom Doctoroff, senior partner at global brand and marketing firm Prophet. Most Chinese companies still are much more focused on sales than service, he says. 
“When you want to talk about customer experience, you have to look at corporate structure and whether it can provide an integrated holistic experience,” says Doctoroff, who lived in China for decades and is the former Asia Pacific CEO of communications firm J. Walter Thompson. “The ecosystem that is required is a very refined ecosystem.”
More at Wardsauto.

Tom Doctoroff is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

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Tuesday, May 03, 2016

Auto industry booms in a slowing economy - Sara Hsu

Sara Hsu
Sara Hsu
The Beijing Auto Show was an exceptional bright spot during an economic slowdown that is worrying many, writes financial analyst Sara Hsu in the Diplomat."We can expect China’s auto industry to keep moving."

Sara Hsu:
SUVs have increased sales in recent months, particularly as Great Wall Motor and Chongqing Changan Automobile Co reduced prices on entry-level SUVs. SUV sales increased by 45 percent between 2014 and 2015, reaching 6 million vehicles in 2015, or one third of new passenger vehicle sales. New energy vehicles have increased sales from a low base, with eager new Chinese firms planning to enter the electric car market. 
Government policy has boosted car sales, with a 50 percent cut in smaller engine sales tax in October of last year making vehicle purchases more attractive. The government is also providing state subsidies of up to 120,000 RMB for the purchase of electric cars until 2017 in order to reach a target of having five million electric cars on the roads by 2020. A government directive also requires banking institutions to lower the down payments for new energy vehicles, while another requests that public institutions add more NEVs to their car pools. The government is invested in ensuring that consumers obtain the best prices possible in general. Anti-monopoly law has been drafted to increase competition in the auto sector and improve conditions for the consumer. 
China’s well-functioning auto sector is a bright spot in a dwindling economy. Automobile consumption boosts consumer spending, which China’s leadership is attempting to expand. Encouraging innovation and ensuring competition by reducing monopolistic practices continue to benefit the sector. Meanwhile, the participation of Chinese firms in vehicle production helps to ensure China’s viability in this global sector. While infrastructure, a necessary complement to vehicle use, may lag in some regions, China’s commitment to development and urbanization will ensure that roads and electric vehicle charging areas continue to expand. We can expect China’s auto industry to keep moving.
More in the Diplomat.

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Friday, April 18, 2014

Super-rich earn fortunes in China´s car-industry - Rupert Hoogewerf

Rupert Hoogewerf
Rupert Hoogewerf
China´s billionaires not only spend a huge part of their money on luxury cars, they also make it from the car-industry, says Rupert Hoogewerf, founder of the Hurun Rich list in the China Daily.25 Percent of the super-rich in the automotive industry come from China.

The China Daily:
A quarter of top car-industry billionaires call China home, a list from Shanghai-based Hurun magazine that documents the life of the wealthy, showed.
This year's Richest People from the Car Industry list named 45 billionaires from 13 countries. Their average fortune was $3.75 billion. Among them, 11 are from China.
Wei Jianjun, 50, chairman of the Hebei-based Great Wall Motors Co Ltd, is the richest self-made car entrepreneur in China. He ranked fifth with $7.7 billion. His company is China's largest private car brand and the biggest domestic manufacturer of SUVs and pickups.
Great Wall's market capitalization is more than $16.7 billion and annual production capacity is 800,000 vehicles. Total sales revenue was 56.8 billion yuan ($9.19 billion) in 2013 and net profit 8.3 billion yuan.
"It is no longer a secret that Chinese billionaires are huge buyers of luxury cars," Rupert Hoogewerf, chairman and chief researcher of Hurun Report, said. "But still it is quite a surprise for us to find out that Chinese are not only major buyers but also major profit-makers."
Most of China's leading automobile companies are State-owned, making it difficult to calculate personal wealth, he said.
More in the China Daily.

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Thursday, September 13, 2007

Volkswagen is doing an amazing job


Volkswagen Santana
I was rather amazed when I saw the list of car sales over the month August at China Car Times. The car model I thought was fully out of grace, the Volkswagen Santana, is back at the top of the list.
In the 1990s the then very successful joint venture between Volkswagen and SAIC, the automotive industry owned by the Shanghai government, introduce this car model that had never appealed to the European car buyers. But since it was the only model the leading car manufacturer was allowed to produce and since it were mainly state-owned companies and government departments buying the car, nine out of ten cars on the streets in Shanghai were a Volkswagen Santana till the end of the 1990s.
Then SAIC started its love affair with GM, partly to punish Volkswagen for its extramarital affair with FAW up north, where it started to make the Audi. Bit by bit the Buick started to take over and actually became for a while the leading car model.
Obvious, now the market has become much more consumer driven, Volkswagen is doing something good. Not only is this strange product of the former planned economy back on top, in the rest of the top ten we find the Jetta of Volkswagen at the second position. the Octavia at five and the Passat at eight.
Time to look for somebody who can explain all this to me.

Sunday, September 02, 2007

Your girl's favorite


Chery QQ
Where are the days that Chinese girls were happy with a fake Gucci bag and a pair of shoes? China Car Times comes this weekend with the top-10 girl's cars and fortunately the number one is small and affordable, the Chery QQ:
What else could be Chinese womens ultimate favorite car ever other than a homegrown domestic car that costs peanuts to buy and pennies to run? Its small, its mega cheap, its funky, its everything a chic urban chick needs to get from A to B to C to D to E to F to G, and back to A again to buy the first thing she saw in the best possible way. China Car Times has several friends who have QQ’s, both male and female, and they regard it as the Chinese ‘Peoples Car‘ - a car that anyone can afford regardless of social standing. The QQ (now demoted to mere QQ3 after its ugly bigger sister, the QQ6 appeared) is still selling well despite the QQ6 showing up on the block. The QQ will definitely go down in history as a memorial to Chinas industrial development.
But on a scary 9th place we also see the Audu A4, worth five Chery QQ. "Size must matter, after all," remarks a snarky China Car Times.
My favorite girl is driving an Audi A4, but that is fortunately paid for by her company. That makes deciding easier.
The article has no trace of a source and even does no try to explain how the listing has been done, so the scientific value - unlike that of other listings - might be low.