(Yicai) Nov. 4 -- Due to the shrinking market share of Japanese automakers in China, auto parts suppliers from Japan have begun to pursue tie-ups with Chinese vehicle manufacturers to integrate into the supply chains in the world's biggest car market, according to an industry expert.

"The rise of China's auto industry has placed many overseas car brands that entered the country earlier in a survival predicament," He Xiaolei, chief representative of Japan Value Engineering Society's local division, told Yicai during a on-site visit by representatives from more than a dozen Japanese auto parts firms to Chery Automobile's plant in Wuhu.

This has made Japanese parts suppliers that followed automakers into the Chinese market decades ago seek ties with local car manufacturers, He added. Under the new situation of a drop in production by foreign companies, the need for parts suppliers still operating in China to integrate into the local auto supply chain, especially the new energy vehicle one, will become increasingly urgent, He pointed out.

The annual conference of the Japan Value Engineering Society in China started holding a matching service session to help Japanese parts suppliers connect with Chinese carmakers last year.

Chinese automakers will not blindly reduce suppliers' profits but instead explore ways to help them improve efficiency, reduce costs, and further open up their supplier system, providing more possibilities for Japanese supply chain players to enter China, He noted.

More and more Chinese carmakers will consider purchasing Japanese parts in the future, according to He. During the critical period of global value chain restructuring and the accelerated overseas expansion of Chinese firms, companies from China and Japan should learn from each other and take the initiative for international cooperation and labor division, He said.

Editors: Tang Shihua, Martin Kadiev