So far, among the world's top 100 auto parts suppliers, 70 percent has been to China for business and more than  1,200 foreign-funded enterprises produce auto parts in mainland China.

In 2006, the auto parts business sales revenue was 403.5 billion Yuan, of which foreign investment (holding or solely foreign-funded) parts and components occupied the majority of market share, domestic parts and components only accounted for 20% -25%.

Global auto parts giant Bosch recently said that from 2006 to 2008, it would increase 620 million euros investment in China, which was the equivalent of the total amount of investment in China before. Another auto parts giant Delphi also announced that it would build two new parts plants in China.

Since "On the Auto Parts Import Management Approach" was implemented in April 2005, the investment enthusiasm in China of foreign auto parts enterprises suddenly raised. According to statistics, at that time, foreign parts and components enterprises with new contract to invest in China amounted to more than 90, agreed investment amounting to 4 billion U.S. dollars, 3.2 times of 2004. Among them, there are Delphi, Denso of Japan, Sumitomo, the United States Dana, France Valeo, Japan Fujitsu and other electronics parts and components of transnational giants. Two years later, this boom did not retreat either.

Auto parts industry' s clear tendency of foreign owned fund and the firm control of foreign capital to the core technology become the industry key attention.

However, the first quarter of this year's auto parts industry investment data, has revealed some subtle changes of foreign investment strategy.

More joint venture projects
During summer season, construction work of Delphi' s two joint ventures parts plants in China is being carried out in full swing. However, in the first half of last year, Delphi preferred owned mode to set up factories in China.

A set of data showed that among business sales rankings "2005 China Auto Parts Top 100", wholly foreign-owned enterprises have as many as 20. At that time, 68 percent foreign investment enterprises components chose owned. The first half of 2006, production of automotive components multinational investment in China reached 13 billion Yuan, the area of investment involved in the engine, chassis, transmission, automotive electronic components, etc. Of these, more than 90 percent of the new project is owned enterprise.

First quarter of this year, the wholly-owned tend of foreign parts enterprises has quietly changed.
On January 16, Mahler Three-ring Valve Actuation (Hubei) Co., Ltd. was established in Macheng, Hubei. Mahler holds 60 percent stake of the joint venture, Hubei Three-ring Valve Co., Ltd. is holding the remaining 40 percent. On January 19, a total investment of 12 million U.S. dollars of the ball-tire (Qingdao) Technology Co., Ltd in Qingdao in the export processing zones held a stone laying ceremony, the company from the United States Q Tires tire company and the Chinese partners to set up. February 1, from Germany Getelake Corporation joint venture with Jiangling Motors Group formed Getelake (Jiangxi) Transmission System Co., Ltd. unveiled the establishment in Nanchang, the two sides shares were 66.7% and 33.3% respectively.