RCEP to energize the engine manufacturer

By ZHONG NAN in Beijing and ZHANG LI in Yulin, Guangxi | China Daily | Updated: 2022-01-17 09:47

A worker checks engines at a factory of Guangxi Yuchai Machinery Group Co Ltd in Yulin, Guangxi Zhuang Autonomous Region in September. Yuchai has exported over 260,000 engines to ASEAN countries by the end of 2021. [Photo provided to China Daily]

Yuchai charts plans to expand and introduce more green products to overseas markets

Guangxi Yuchai Machinery Group Co Ltd, or Yuchai, a major Chinese internal combustion engine manufacturer, plans to introduce more green products to overseas markets in coming years after the regional comprehensive economic partnership agreement, the largest world’s free trade agreement covering 15 economies, came into force in early January.

In addition to markets under RCEP, such as those in Southeast Asia, the company also plans to expand its market presence in Africa, the United States and the European Union and improve capacity of its research facilities to provide more economical, durable and powerful engines. to its global customers in the truck, bus, shipbuilding, power generation, construction and agricultural machinery manufacturing industries.

As China’s manufacturing capacity and supply chains have become an important part of the global economy, expanding overseas business will be vital for Chinese companies to compete with other foreign rivals. established over the next decade, said Li Hanyang, chairman of the company.

“For example, we have actively partnered with companies in Africa and Southeast Asia to provide customized, high-efficiency motors to companies, especially those in the infrastructure and transport-related sectors, while offering green engines to customers in Europe and the United States to keep pace with the high standards of these developed markets,” Li said.

“If we want to be successful, customers must be successful first,” he said, stressing that only win-win cooperation can achieve lasting and healthy results. Yuchai will focus on its core business and has no interest in turning into an automaker. Therefore, he will not stand on the opposite side of his partners, he said.

Due to its location close to markets of the Association of Southeast Asian Nations, the state-owned company headquartered in Yulin, Guangxi Zhuang Autonomous Region, has exported more than 260,000 engines , from low speed to high speed, towards the block of 10 members in late 2021.

Despite the impacts of the COVID-19 pandemic, the company has benefited from institutional trade agreements such as the China-ASEAN Free Trade Agreement implemented in 2010 and updated in 2019, as well as growth tangible part of the Belt and Road Initiative. It shipped 20,596 engine units to various ASEAN markets in 2021, up 63% year on year.

Li stressed that quality is the priority of many countries, as well as green and low-carbon urban development, such as building a more efficient public transport system and establishing stricter rules on vehicle emissions. heavy industries.

“If we look at the pace of urban expansion in many regional markets and how the regulatory environment and new infrastructure are developed together, this is a remarkable and unique growth opportunity,” he said. -he declares.

As China aims to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060, Yuchai announced in late December that the YCK05N, China’s first hydrogen combustion engine for commercial vehicles, had been successfully tested, with an effective thermal efficiency comparable to that of the hydrogen fuel cell. .

The new engine is based on high pressure multi-point intake air injection technology and a low inertia turbocharger. It can be widely applied to municipal, sewerage, logistics and distribution services.

Li said the group will use its experience and advantages in internal combustion engine research and development to develop a solid process of transforming hydrogen engine development into hydrogen engine mass production.

It plans to achieve ignition of the YCK15N, another type of heavy-duty hydrogen engine for heavy-duty applications, in the first half of the year. It is another initiative of Yuchai in the application of hydrogen energy after the release of its hydrogen fuel cell, pushing the energy transformation of China’s internal combustion engine industry against the backdrop of the era. hydrogen energy.

Compared to traditional fossil fuels, hydrogen is considered a clean and promising automotive fuel. Hydrogen fuel cell vehicles, powered by electricity generated by compressed hydrogen fed into the fuel cells, produce zero greenhouse gas emissions because they only create water, electricity and heat.

A report released by the China Machinery Industry Federation in Beijing says the country’s 2030 and 2060 targets will drive automotive consumption patterns and industrial structures to switch to electric mode at the political level.

For example, Hainan, a scenic island province, has promoted the use of clean-energy vehicles, aiming to completely eliminate sales of fossil-fuel vehicles by 2030.

Even though the industry still faces many challenges such as changes in a vehicle’s power source and fierce competition, Li said hydrogen is the ultimate energy for the future. His group must therefore accumulate technological advantages in hydrogen engines.

“Launching new engines that meet or exceed next-generation emission standards has been a key strategy for Yuchai to create a technological advantage in the commercial vehicle engine market across China,” Li said.

Founded in 1951 and backed by around 15,000 employees, Yuchai currently operates more than 30 subsidiaries, with total assets of 50 billion yuan ($7.84 billion). It has industrial bases in many provinces of China, including Guangdong, Jiangsu, Anhui, Shandong, Hubei, Sichuan and Liaoning.

Implementation of the RCEP agreement will help facilitate trade liberalization and economic integration in the Asia-Pacific region. It is expected to serve as a key driver of trade and investment and promote a more inclusive economic recovery in ASEAN in 2022 and beyond, said Zhang Jianping, director of the Center for Regional Economic Cooperation of the Chinese Academy of Commerce. international and economic cooperation. In Beijing.

RCEP represents almost a third of the world’s population and 30% of its gross domestic product. Its certificate of origin is a document provided by an exporter to prove the origin of a good at the request of an importer within the framework of the RCEP agreement. It is only once the certificate has been obtained that the goods can benefit from tariff exemptions in the member countries.

Tu Xinquan, dean of the China Institute for WTO Studies at Beijing University of International Affairs and Economics, said ASEAN countries have long been important trading partners and destinations. investment for Chinese companies due to their growth levels and abundant resources.

In 2020, ASEAN became China’s largest trading partner, and China has been ASEAN’s largest trading partner for 12 consecutive years. In the first 11 months of 2021, bilateral trade soared 20.6 percent year on year to 5.11 trillion yuan, accounting for 14.4 percent of China’s total foreign trade in the same period, it said. the General Customs Administration.

Barbara M. Stokes