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1: Joint ventures have played a big role in the development
of China¡¦s auto industry.
„Ï Hypothesis 2: Joint ventures have helped China¡¦s auto industry to
restructure.
„Ï Hypothesis 3: Foreign partners have transferred their core technology to
joint ventures.
The specific objectives of this research:
The main issues of this paper are that, China¡¦s automobile industry has
been seen as one of the supporting properties in the national economy,
because the development of car industry can bring along the rapid
development of many related properties, such as mechanical industry, and
electronic industry. And over the past twenty years, China¡¦s auto industry
has experienced great changes in terms of the amount and quality of
production. Besides, the big market plus the fast-growing economy lure
quite a few auto manufacturers, including the domestic manufacturers and
foreign manufacturers.
Obviously, domestic automakers are not strong enough to compete with
foreign rivals since China¡¦s auto industry is still in its early stage.
And it is impossible to lock domestic market to the rest of the world under
the tendency of globalization. In order to protect China¡¦s auto industry
from fierce competition since it is too weak, Chinese government set the
strict regulation regarding the auto industry and foreign direct investment
(FDI). As stated, while it is possible to set up wholly foreign-owned
enterprises in China, the products produced are not allowed to sell in
domestic market. Alternatively, foreign auto firms can choose to have joint
ventures with local partners. Through joint ventures, Chinese government
expects domestic automakers can catch up with their advanced partners. And
based on the co-operation, China¡¦s auto industry can develop strong
self-development capabilities and brands. Currently, the fact is that the
Chinese auto market is largely dominated by these foreign brands. Given the
research aim, the specific objectives of this study are developed as
listed:
ƒå To analyze the structure of China¡¦s auto industry (here using Porter¡¦s
five forces model)
Č To examine the performance of car joint ventures in China
ƒå To examine the benefits that China¡¦s auto industry has acquired through
joint ventures
Introduction¡G
As a developing country, China is a rapidly rising global economic power.
Overall growth has averaged a robust 7% to 8% for more than a decade (China
Daily, 2004-03). Among its many industries, the auto industry is the
backbone industry of Chinese national economy, because it is an industry
which is highly interrelated with other industries and has great hearings
on the whole national economy. Early in the period of planned economy,
Chinese auto industry had established an auto industrial system, mainly for
production of cargo vehicles, in order to meet the needs of economy,
national defense and official duties under the system of planned economy.
Since the reform and opening up, the auto industry, oriented towards the
market, has made long-stride progress. Especially over the past twenty
years, the state has given boost to the development of auto industry as one
of the two pillar industries---the other being housing---in a bid to
stimulate people¡¦s consumption, spur the market and enlarge domestic
demands. For the auto market in China±¾ÂÛÎÄÓÉÓ¢ÓïÂÛÎÄÍøÌṩÕûÀí£¬ÌṩÂÛÎÄ´úд£¬Ó¢ÓïÂÛÎÄ´úд£¬´úдÂÛÎÄ£¬´úдӢÓïÂÛÎÄ£¬´úдÁôѧÉúÂÛÎÄ£¬´úдӢÎÄÂÛÎÄ£¬ÁôѧÉúÂÛÎÄ´úдÏà¹ØºËÐĹؼü´ÊËÑË÷¡£