The Alternative Of Developing Strategies Of China's Automative Industry Under The Economic Globalization

The Alternative of the developing Strategiesof china's Automative Industryunder the Environment of Economic Globalization:ABSTRACTEconomic Globalization, represented by way of informationization, marketization and multinationalization of production factor, has been speeding up since the 1990's, having a significant influence on world's economic development and structural reorganization. Economic globalization is not only an opportunity but a challenge: on the one hand, it helps developing countries to obtain capital and technology from developed countries which is necessary for their economically overtaking objective and industrial structure upgrading, on the other hand, it brings fierce shock to their economy at the same time. There is a rule for the evolution of industry structure, and this rule, while still at work, has something special under the environment of economic globalization. Some traditional industry like automotive industry is strategically important for the industrialization and structural reorgaization of big developing countries. Thus it is necessary to work out some industry policies to support them so as to pull up the whole national economy.This Paper deals with the status quo of world automotive industry and its two major trends: first, amalgamation and coalition are speeding up for the sake of economy of scale, and second, technological innovation is accelerating resulting in many a new products and technology. Then it turns to what Chinese automotive industry was and is like, and analyses its competitiveness by contrast with its advancedopponents. The effect of China's entry into WTO on Chinese automotive industry is also dealt with here. After that, two cases of international experience of automotive industry development, the Japan-and-Korea model and the Latin American model, are studied leading to the conclusion that China should take a middle-way between the idea of a free market and the idea of a industry policy-oriented development, sponsored by each model respectively. Finally some suggestions are made regarding the developing strategy of China's automotive industry: from the macroeconomic point of view, China should revise its policy of automotive industry, reorganize its industry structure to make it optimal, foster the market of automobile consumption, make good use of the law of WTO, promote technology innovation, found a positive macroeconomic environment, and coordinate with the relevant industries. On the microeconomic level, enterprises need to turn to the track of makert economy by means of deepening reform and changing management mechanism, and adjust the structure of their products in order to guarantee the equilibrium between demand and supply.