Keywords: self-reliant system, state enterprise, people', s car, joint ventures, completely knocked down kits, technology licensing, privatisation, geopolitics, global economies of scale, automobile industry
Foreign development of China's motor vehicle industry
Foreign technology from Western Europe, the USA, and Japan has been instrumental in the development of China's motor vehicle industry, but progress has been slowed by bureaucratic inertia and attempts by the state to micromanage the industry and foreign investments/trade. Moves to rationalise and privatise state enterprises have failed to promote competition and innovation and the serious lack of profits is discouraging some corporate investors. The country's success in agriculture and light manufactures has so far not been transferred to heavy industry, with China requiring foreign inputs for the development of its passenger car and light truck industries. Enterprise development of First and Second Automotive Works are given as well as the joint ventures between state or municipal firms and foreign multinational corporations to illustrate the contrasting motives, dynamic interaction, and frequent disappointments of the public-private sector efforts.