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'MsoNormal'> Since China's opening and reform it has moved from production of around 30 000 vehicles of which were pronominally “heavy good vehicles” in the late 1970's, to become the world's fastest growing automotive producer with an even more dramatic increase since 2000, now producing around 13 million vehicles (Tang, R, 2009) (The Economist 2009) see figure 1. This also represents product diversification and a shift in production from mainly heavy goods vehicles such as cargo trucks and small to medium sized vans, which in 1980 made up 75% of the limited vehicle production. To a model that is closer to that of a mature industrial market with increased levels in production of passenger cars and light vehicles. Production in passenger cars now contributes to more than 50% of total production, responding to the increased domestic demand, reaching around 6 million units in 2009 (Tang, R, 2009).

Change in Policies.

Suppressed for many years and under absolute control of the Chinese command economy before the 1980's the Chinese automotive market has grown due to the liberalisation of policies and further policies that have been established to increase domestic demand and acquire technological knowledge and capital. In the 1980's imports massively exceeded the domestic production of automobiles. In the year 1995-1996 China legally imported around 150 000 cars, representing a dramatic increase and greatly exceeding the amount of domestically produced vehicles (Sit, Victor. F.S, Liu, W, 2000). Resultantly this began opening up the Chinese government's eyes to the huge domestic demand for cars, and raising concerns on the drain of national currency. Consequentially a decision was made to embark on the expansion of the automotive industry, in an attempt to replicate Americas rise to industrial glory, making the automotive industry a pillar of its economic growth (The Economist 2009).

In the 1980's there came the first move towards increased decentralisation, an attempt towards a market economy, change of power with assignments of large automotive conglomerates to regional provinces and the creation of policies to offer preferential environments in an attempt attract FDI (Sit, Victor. F.S, Liu, W, 2000). This combination led to an increase in interest and an inflow of FDI into the auto market. In relation to the models of entry strategies categorised by Chaudhuri (1989) and import substitution strategies whereby the MNC's are allowed to enter the market under the pretences of access to the market along as they abide by such restrictions as high local content in production. Along with the alternative method of export oriented strategies, attempting to nurture national firms through control of FDI with motivation to export. The Chinese government has implemented a dual approach that positions them somewhere between the two. Their main goal and long term vision is centred on developing their own national automotive market, also with the eventual view to export. However, willing to play the long game, they have allowed FDI from MNC's in the form of joint ventures, imposed limiting policies with the clear inten本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。