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rs from other sectors. Higher tariffs have also been impeded on certain criteria specific imported parts and conditions of imported vehicles with the view to encourage and promote the use of advanced technology, large scale market development and the advancement of the domestic parts industry. With further industry development in mind, there became applicable tax breaks on R&D investment in order to encourage local research and the development of local innovation systems and indigenous intellectual property, along with support for private enterprises, and standardisation of practices allowing a more fair and transparent market for consumers and manufactures (KPMG 2004). The new policies allow China to maintain a stake in, and exercise a amount certain control over the industry but with the mind for future expansion and mastery of the industry. Higher barriers of entry along with further incentives towards local development of intellectual capabilities and advancement in auto part production encourages the domestic competition in order to improve quality and the hopeful eventual emergence of domestic winners capable of competing on the world market.

 

Further policies were implemented in 2009 in order to encourage growth in the form of fiscal stimulus offered in rural subsidies and tax cuts on small cars. As mentioned car output grew slowly between 1978 and 2000, however post 2000 rapid growth in production commenced with production increasing from about 0.6 million units to 5 million units in 2005 with over 50% being passenger vehicles. Again output continued to grow rapidly increasing to around 9 million units in 2008, with 65% comprised from passenger car production (Tang, R, 2009). A further surge in China's unprecedented recent growth in 2009 shot production up to over 11 million units, with 1.21 million units sold in the month of October, which is a 72.5% year on year increase (Tang, R, 2009) (see figure 4). This massive increase in sales in response to huge increase in demand is both the function of early policy reform and the recent fiscal stimulus which provided undoubted aid to the increase and put it on track to become the largest auto producer. A rapid advancement has occurred within the Chinese automotive industry since 2000, and can be understood through the industrialisation strategy framework outlined which as a whole has largely sat within the Chinese governmental policies. With this development there has been a move from displaying primary ISI characteristics towards more advanced secondary ISI behaviour where the subsitution imports of capital is being demostrated and a move into the production of more technologically adavnaced goods and intermediate goods. There has been a developmet in the production from private owned assemblers along with the the JV with the big five Chinese auto producers, and although still not quite as competative on the world scale they are learning fast and showcaseing the manufacture their own porduction models (The Economist 2008). The autoparts sector with its liberalised autonomy in comaprison, has commenced primary satges of EOI, engaging in the exports of labor-intensive, and more simple parts to oversea markets such as the US. Alternative stratergies have been implemneted due to extra room for decisions allowing the advancemnt in technological ca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。