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Analysis of the comparative advantage of the current situation and development of China's auto industry

Author: YuHaiPing
Tutor: JiangDeEn
School: University of Foreign Trade and Economic
Course: International Trade
Keywords: Auto industry Comparative advantages World Trade Organization industry promotion strategies
CLC: F426.471
Type: Master's thesis
Year: 2007
Downloads: 893
Quote: 6
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Abstract


In the view of the world history, auto industry is regarded as a pillar industry for most developed countries or countries with rapid economic development because it plays a key role in the development of each country. Therefore, auto industry stands for industrial level of one state. The competition of international auto industry is fiercer in today’s globalization world,and China’s entry into WTO have great influence to China’s auto industry which was once under government protection and control. Although China’s auto industry was just established more than 50 years ago and has several comparative disadvantages, there are still some formed advantages that should be emphasized and managed, which is the key to the development of China’s auto industry.Goal of China’s auto industry by the end of 2010: 60 million autos will be made, 40 million of which will be cars; three or four auto manufacturers whose annual production capacity is 10 million will be founded; and auto group with advanced research ability and international competitiveness will be established. In the way, auto industry will become actual China’s pillar industry. However, given actual situation of China’s auto industry, this goal needs more energy and efforts.In this essay, on the base of China’s auto development before/after China’s entry into World Trade Organization, influences of WTO to China’s auto industry are analyzed. Then related indexes of comparative advantages are made so that comparative advantages/ disadvantages of China’s auto industry are analyzed. At last, some specific proposals on China’s auto industry promotion are put forward.

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