In the year following its entry into the WTO, multinational auto giants basically completed the enclosure movement in China's vehicle manufacturing industry. However, China's auto parts industry has not yet entered the global automotive industry chain, and the auto parts industry profits are much greater than the vehicle manufacturing. At the same time, China's auto parts market has broad prospects. According to analysts at Deutsche Bank, China’s auto and light trucks now have a production capacity of 1.9 million vehicles per year, and according to planned investments, this figure will double to 4.1 million units in five years. As for the auto parts industry, Anbang analysts have long warned that this is the core of the auto industry's next enclosure movement. According to the latest news, Visteon, a US auto parts maker, is preparing to relocate its Asian headquarters from Tokyo to Shanghai. The relocation of the headquarters address marks Visteon’s huge investment in the Chinese auto industry. Stian currently has five joint ventures in China. Last year, the company’s sales revenue in China reached US$550 million, and the company’s revenue from the Japanese market was US$350 million. In fact, under the influence of the industry linkage effect, it is only a matter of time before the transnational spare parts giants enter China. The problem is that in the auto parts industry, domestic companies have a relatively low market concentration and it is difficult to compete with these multinational suppliers. The technical threshold required by the auto parts industry is not high. China has a certain comparative advantage in this respect. This part of the market should not be easily let out. Therefore, the integration of the auto parts industry is necessary, otherwise it will be completely annihilated.