The SCP Analysis Of Chinese Car Industry

Following the entry of China into the World Trade Organization, the government's protection on the car industry has been reduced. Therefore, the international competition in front of Chinese car industry has become stronger and stronger and brought brand-new changes in its market structure, market conduct and market performance. For the five years interim of China's entry into WTO will be over in 2006, the further release of the protection from government will bring a larger challenge on our car industry. How should Chinese car industry succeed in this strong competition? Not only many scholars but also the government have paid more attention to this problem. In Jun. 2006, the National Committee of Development and Reformation issued the new'Policies for the Development of Auto Industry'and carried it into execution. These policies not only have made a full plan for the development of Chinese auto industry in the coming decade, but also the important guidance to the development of our car industry in future.Coming is a new challenge, but the Chinese market of car is not mature enough yet. In the moment of truth, to cognize the present situation of our car industry has become very important. Hereof, in an aspect of industrial organization, I will make an all-around analysis on the status and development of our car industry. This thesis is starting with a full retrospect to the development of industrial organization theory and the relative contents of S-C-P analysis. Then it closely considers the special situation and the background of our country, chooses the latest available materials and useful indexes, sets up a S-C-P frame to analysis the market structure, market conduct and the market performance of Chinese car industry respectively. During the analysis, it also pays a high attention to the relationship between SCP and the importance of government policies, which has made some practice deviate from the theory. Finally, some relative industrial organization policies will be presented on the basis of the above analysis and the government's new'Policies for the Development of Auto Industry',aiming at analyzing our car industry by relative S-C-P theory and obtaining a conclusion, for the reference of relative personnel.