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Big part of the original VW project in shanghai was to get all the steel types required locally produced by the steel company in shanghai. However, many of these specs are not allowed to be sold outside of SAIC companies (In theory, I don't know if it's the case in practice).

As far as I know the steel quality is not a big issue for the chinese car bodies - I can't comment on the crash test strength, but historical problems with steel (think Alfasud in Europe*) had more to do with corrosion resistance. The chinese built cars that have been around for a long time (SVW, FAWVW, DPCA(PSA) ) do not appear to be suffering from the kind of corrosion problems that the Alfasud had . I imagine the domestic brands will also be able to access steel of the same quality.

Some specialty steels that are used in tooling are still not available in china, although to some extent this is to do with distribution - I was offerred chinese made tool steels, but only available from the steel producer and in quantities about 100x what I needed.


* I don't know this story in detail but basically Fiat supplied the design and maybe production equipment for it's 128 small saloon to the russians who produced it as a Lada. Part of the payment was that the Russians supplied steel which Fiat used to build it's Alfasud sporting small saloon car. A cool car but turned to a pile of rust in no time.
 
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