The Development Process Of China’s Automobile Industry From1920to1978

This essay discusses the development process of China’s automobile industry from1920to1978, distinguishes the different developing models in early period of China’s automobile industry, and explores the transformation of automobile industry in history and its historic experience and lesson.Automobile is a kind of imported goods to China. In1920s, Chinese people began to try to build automobile by themselves. Before1949, the automobile industry hadn’t built in China.However; people in China began to use imported parts to assemble vehicles and build the automobile-related spare parts industry. These effects lay a strong foundation for "Domestic Gradual Evolution model" that is a kind of model for China’s automobile industry after1949. What’s more, in the period of republic of China, Chinese engineers’ conception of China automobile industry had already included the content that learn from Russian. That also builds a ideological foundation for the automobile industry model that is learning and transplanting the Russian’s technology after1949.At the beginning of PRC, the central government leaders attached great importance to the foundation of automobile industry. At first, government made a plan that makes use of the legacy device in RC to develop automobile industry. But, after a short while, Chinese government abandoned the plan and chosen the "Transplanting-Russian model" instead of that previous one. Because the Russian aid to China program is much better than the previous plan. No matter in scale or in technology. FAW (First Auto Work) is a typical example of "Transplanting-Russian model". After that, in the special international environment, Chinese government in order to prepare for the war built Chongqing Special Truck Company and China Second Automobile Work and other companies. In the process of building China Second Automobile Work and other companies, the FAW played an "undertaken construct" role. So we can call it "Russian-Domestic model". The automobile industrial model in Shanghai is totally different from "Transplanting-Russian model" and "Russian-Domestic model". Shanghai automobile industrial model is "Domestic Gradual Evolution model". This model isn’t based on Russian technology, but the mixture of modern technology and Auto Parts industry in RC. From the perspective of technology, this model is gradual evolution, not entirety transplanting. Before1978, Shanghai automobile industry manufactured three-wheeled automobile, phoenix (shanghai) car, heavy truck and many other production. It is a typical example for "mixture of domestic and foreign".Except for FAW and China Second Auto Work, many places in China have developed into Automobile base. Especially in "3rd Five-year plan" and "Great Quantum leap", China Automobile industry was blooming everywhere in China and the Automobile industry became separation type in geographical area. This "blooming everywhere model" cause the degree of concentration of China Automobile industry become lower and the negative effects still works today. But, on the other hand, automobile industry was "blooming everywhere" in the planned economy. It developmental models are relatively quite simple. Vast majority are "Domestic Gradual Evolution model" and only few parts are "mixture of domestic gradual evolution and Russian-Domestic model".This essay shows that government took aggressive measures to develop automobile industry. In general, this developmental model in early period is corresponding to the national conditions that have a big population and low purchasing-power. So the developmental measures are focus on heavy truck and military vehicle, not the car. These measures are accord with the comparative advantages in resources and didn’t cause the Japanese-Korean style catching-up. However; due to this comparative advantages, Chinese government didn’t offer strong support to automobile industry, especially the car industry. What the worse, planned economy restrained the market economy which causes cars that is personal consumption doesn’t have any development room. As a result, China automobile industry lost its best chance. After1978, the joint venture models of China automobile industry were always denounced, but in fact, it shows that government strong desire to develop automobile industry. The joint venture model is overdependence on technology import; it has already existed in previous historical models.