Study Of FDI In Chinese Automobile Industry

The development of the automobile industry plays an important role in the economyof a country. China’s automobile industry hasn’t developed long, and the national policyaffects its development. The problems of low level of market concentration degree andtechnology in automobile market need to be further improved. From1986China viewedthe automotive industry as a pillar industry, but compared to developed countries and thechange of economic situation, the pillar industries status was no longer meet therequirements of the development of the automobile industry.The auto industry is technology, capital intensive industry. In the first year ofdevelopment of automobile industry in our country there existed problems such as lowlevel of technology, capital shortage and so on. So the introduction of foreign capital hasbecome one of the ways to develop China’s automobile industry. Through the utilization offoreign capital nearly30years, China’s auto industry has made great development. Someindependent brands have launched their own products, such as BYD launched the newenergy automotive products, but compared to foreign well-known automobile brand, itstechnology, market brand share, operating capacity, product marketing, is still deficiencies.The FDI brings in advanced technology and management experience, also occupiesthe market, impacts China’s economic development imbalance. The current developmentmode of China’s automobile industry combined with the utilization of foreign capital modein Brazil and the independent innovation mode in Japan and South Korea. Take China’sautomobile industry development situation and the background of economic globalizationinto consideration, the use of foreign capital will still be industrial development strategiesin the future for a longer period. From the analysis of China’s automobile industry FDIsource, investment way, the impact to our country automobile industry, quality we canacquire at present in our country automobile industry FDI is promoting China’s economicdevelopment, industrial progress, and employment. But most of the FDI is from thesurrounding countries and regions in Asia, Europe and the United States and othercountries of advanced technology and high quality FDI is less. Therefore, in order toimprove the quality and the utilization rate of FDI in our country, we should formulaterelevant policies, to establish a good competitive environment, incite enterprise to increaseabsorptive capacity, view highly of the use of foreign capital and independent innovation,so as to promote the development of China’s automobile industry, enhance the status of ourcountry automobile industry in the global economic chain.