Effect Of FDI On Market Structure Of Chinese Auto Industry

With the expansion of foreign direct investment (FDI) scale in our automobile industry, some powerful foreign investment companies have occupied large market share and won the notable position in our auto market. Now many scholars pay attention to whether the entry of the transnational corporations (TNCs) will lead to market monopoly. To answer this question, this paper attempts to analyze the effect of FDI on market structure of Chinese auto industry through two methods: Qualitative Analysis and Demonstration Research. The content of this dissertation is as below.Firstly, the article analyzes the FDI survey to our automobile industry, including the course, the reason and the features.Secondly, analyze the effect of FDI on market structure of Chinese auto industry from four aspects: concentration degree, difference of production, entry barrier and economies of scale. In this process, I choose the index of concentration degree to analyze qualitatively because it is important and easy to conduct the quantitative investigation.Finally, basing on demonstration research on market behavior and performance of FDI, this paper try to give some suggestions for our automobile industry on how to use the two key issues—technique and brand to develop mainly by ourselves.