The Burgeoning Chinese Automotive Sector

Abstract

As the commencement of the 'Open Door Policy' that is established by the government of China soon after the demise of Mao Zedong, the automobile industry of China has progressed swiftly specifically from the period of early 1990. The national government has promoted the expansion of both joint as well as domestic ventures through FDIs inwardly by the automobile and its component manufacturers of West and Japan. The aim of China is to become the major player in the automobile industry worldwide by the year 2020.

The Burgeoning Chinese Automotive Sector: Welcome Competition or Unfair Threat?

Introduction

The emergence of Chinese economy in the international automotive sector has given an augment to an immense compact of speculation among academics as well as industry analysts on the matters that what strategies will pursue by the car manufacturers of the China if they really want to enter into the markets that are away from the immediate frontiers of China and threaten the conventional orders amongst the chief automotive manufacturers by escalating its market share at their expenditure. Additionally, working with manufacturing firms of China could provide a golden chance to the western firms for grasping supplementary opportunities in the growing domestic market of China and a cooperation with China in this manufacturing may create some 'new orders' in the international automotive sector.

In this research paper, there will an exploration be done about the augmenting Automotive Sector of China raising concern that either the progress is a welcome competition or an unfair threat. Moreover, the paper will provide three options that could help resolving such new orders and a discussion will be done that how each option would affect the global trading system.

Discussion

After the two decades of frequent economic growth, the local automotive industry of China has made considerable improvement. Several independent local manufacturers of automobiles have come into insight and have goals for making cars for many developed countries. Though they have to rise above the various impediments such as, manufacturing their own and unique automobiles and doing that in compliance with global standards by means of product safety, quality, convenience, luxury, and other environmental characteristics, the local manufacturers are intensifying their market shares and advancing towards the value chain.

Growth of Automotive Industry of China

The automotive market of China is yet considered as amongst the extraordinary impending growth and is supplementary encouraged by the rate at ...