China’s Automobile Industry: From Market Protection to Effective Competition

LEI Hui1 (雷辉) and XU Changsheng2 (徐长生)
Editorial note:

China is a major FDI recipient, and her automobile industry has one of highest concentrations of investment from multinational corporations. As a pivotal industry in the Chinese economy, the automobile industry is notable in China for the influence of multinational corporations upon its competitiveness. This article carries out an empirical study upon the investment in China’s automobile market by multinational corporations during two separate phases. On the basis of their research, the authors believe that, along with the entry of more multinational corporations into China, the development of China’s automobile enterprises and the opening-up of her automobile industry, competition among multinational corporations in China’s automobile market will intensify, resulting in lower product prices, technological advances and optimization of industrial structures in China’s automobile industry.

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