China's northeastern industrial hub of Shenyang is home to the major production base of BMW Brilliance. The company's production capacity and positive sales volume continue performing well, even in the recently slowing Chinese car market. And it's also a successful example of foreign investors growing together with their Chinese partners. CGTN Reporter Feng Yilei finds out how.

2003 was the dawn of a new era for "made-in-China." That's when German auto giant BMW's new joint venture with Brilliance Auto in Shenyang saw cars assembled locally, but with major parts, components, and technologies imported. 

More than a decade and a half on, along with its fast-rising production capacity, BMW Brilliance's Chinese suppliers have jumped to over 378, now contributing to nearly half of all parts and components. It's not just a cost-wise shift, but an attempt to dive deeper into the Chinese market.

DR. JOHANN WIELAND CEO, BMW BRILLIANCE "We could not have been so successful without having outstanding suppliers here in China. You know that we always want to work with the best suppliers. We always want to rely on their innovation, quality and their competitiveness."

For local auto-part suppliers, chances and challenges coexist. Power Xinchen, BMW Brilliance's first supplier for engine crankshafts, hopes to expand the market and go global through collaboration with world-leading manufacturers. The company has met the preliminary goal by providing crankshafts to BMW's overseas plant. But that came after they struggled to meet the strict standards of their joint-venture client.

LE JIXIANG DEPUTY GENERAL MANAGER, POWER XINCHEN "Their demand for us is "quality, quality, and quality". It took us seven years of system improvements and management reforms to reach zero defect and get their full recognition. And they've guided us on logistics, efficiency, costs and planning."

BMW Brilliance says they understand well why and how OEMs should develop a network of mature partners. In the past 16 years, they have helped several Chinese suppliers like Power Xinchen grow into industry leaders or global suppliers. 

That also includes hundred-year-old Chinese state-owned steel manufacturer Shougang. It was in the transition to provide high-end steel plates and services. BMW Brilliance seemed to be an ideal starting point, but lack of experience kept their products far from the demand of luxury cars. However neither side gave up in seeking breakthroughs in quality control, research and development.

LIU JIANHUI GENERAL MANAGER, BEIJING SHOUGANG "Some of our peers once compared our attempt to step into the field of auto sheet production as a pupil trying to get Master degrees. After almost a decade of growing pains, our success in working with BMW Brilliance finally won us brand influence and deals from over 70 OEMs and parts factories. We can see the growing confidence in us in the industry."

Experts say in the past 20 years, the growth rate of Chinese automaking suppliers has exceeded that of the entire industry, especially in fields like automotive interior and transmission. While suppliers now account for over 75% of the total value of a vehicle, many believe they will play a more important role. National policies have already shown focus on the whole supply chain rather than merely car assembly.

FENG LI PARTNER, DELOITTE CONSULTING "I think China's automobile industry, especially our auto parts industry, has a very promising future. It is growing from local supply to global supply, and is enhancing technologies and levels of substitution. Some of the core component suppliers are already devoted to future technologies like automatic driving, vehicle networking and so on. Their development will bring advantages in both production capacity and technology to private Chinese firms."

As for BMW Brilliance, it is said that the company will further expand partnerships yet cut purchases of traditional components.

FENG YILEI BEIJING "What's your take on the future development of the Chinese auto supply chain? How do they match with BBA's future strategies, especially in fields like NEV and autonomous driving?"

DR. JOHANN WIELANDCEO, BMW BRILLIANCE "We have the leading companies here in China and a lot of innovations do come from china. I think in this area we can get a lot of innovations, in particular, the BMW group can get a lot of innovations out of china, and using them all over the world."

Next year, BMW will start producing their new all-electric BMW iX3- only in Shenyang. It will be exported all over the world. That suggests the win-win relation between Chinese suppliers and big names in auto-manufacturing have come to a new stage, in a more challenging market, facing the forthcoming intelligent and electric revolution in the auto sector. Feng Yilei, CGTN, Shenyang.