Analysis On The Trend Of Development And Policy Choice About The Automobile Industry Of China After Excessive Period Of WTO.

The participation to WTO has rendered our country not only great economical profit but also trade friction. The more important thing is that our country has been sped up to come close to international on track and stand to the international order so that ask myself according to the norms and act according to the rules. Automobile industry was considered to be the one which was impacted mostly of all over the industries in China. All fields of society including automobile business talked about it sadly, it seemed that there would be a collapse disaster for automobile industry after joining WTO. However, since the 5 years, automobile industry has been one of the supporting industry and first hot consuming point, with the rising status in the national economics. 2002 was a glorious year of the automobile industry in China, the productions were 3.2512 million units, increased by 38.49% comparing with the period of last year; sell out 3.2481 million, increased by 36.55%. Comparing with 2001, production and sales both overtook more that 25 percentage points, fulfilled the "tenth-five-year" goal three years ahead.2006 was the best year for the automobile industry market in china recent years and the international position promoted to the new stature. In 2006, our automobile was produced 7.2797 million and it went up 27.32% so that become the third one in the history of the automobile development which had produced 7million. Therefore, the sale came to 7.216million and it added up 25.13% to surpass Japan so that become the second one in consuming automobile in this world. After joining WTO, the internal automobile industry has not been impacted by the abroad but quickly showed the grateful situation. In 2006, the market portion of the brand of our automobile which was independency has become 25.67%, especially the Qirui got into the four-strong. However, the increasing strength of the brand of Japanese and Korean automobile devoured the portion of the European in Chinese market, especially the representation of the brand of Japanese automobile was notable.Dec. 11^th 2006 was the 5^th anniversary day of joining WTO which means the ending of the excessive period and facing with the comprehensive opening and new challenge. The ending of the excessive period of WTO means that our automobile industry will enter the age of opening independently. The detailed list and the international circumstances of the agreement of the excessive period of WTO was the great external braking power which is out of question. It also sped up the process and the opening of reform of internal automobile industry. Whether we could extend the opening and drive to reform or not is worth paying attention to because there is no limitation in time and no external stresses next.Last five years, if we had opened to the outside world according to the promised time, the foreign capital would have great treatment exceeding the national. In that case, with the ending of the excessive period of WTO, the key point of opening should have moved to the internal automobile industry, to eliminate the prejudice of ownership, to the barrier of district ,to the trade of monopolization, etc.With the ending of the excessive period of WTO, on the first hand, with the reduction of tariff and the further step of the increasing of quota, and the further step of the expanding of market entrance permitting made the home market globalize step by step; on the other hand, the capital inflow internationalized, i.e., the competitors in Chinese market are the same with those of the international market.The main progress of the automobile industry in China accelerate internationalization;1. The industry of Native automobile became one part of the strategy of multinational companies which means the cooperation between them will be up further.2. Multinational company enhances the investment in China. Nowadays, all of the main multinational automobile factories are running in China, and complete their overall arrangement. Facing the fast developing market in China, almost all of the multinational companies are considering extending production. For example, Germany Volkswagen decided to increase its investment to 6 billions EU dollars, take the 87% of its total investment in Asian-pacific region.3. Multinational company is moving into China with full orientation, competition will be more intense. Except the produce, the competition will appear in the businesses of sale, financing, mechanic service, car rent etc. from the reform and open, almost the multinational companies moved into China, at present, they take the 90% market through their cooperation partner in China. All the evidences show that, the cooperation between the super international automobile company and native company in China has reached high level and wide fields. Automobile industry in China has moved into the internationalization process.We can say that, joining into the WTO accelerate the internationalization process of automobile industry in China. For the development of the automobile industry itself, it's a critical issue of the development of China automobile industry that what strategy and tactic to adopt and how to participate and make use of globalization.In recent years, government makes the speed up of the study and making of the automobile business specification policies apparently with the fast growth of automobile market and the confirmation of the supporting status. Especially the latest << Automobile industry policy>> released and be in effective, coming out the relative policies referred to this policy continuously.Since 2005, several policies which draw much attention like:<>,<>,<>,<> and importing automobile landing duty tax policy etc become effective in April, August, October respectively. And, industry technique standards methods like<>, <> were released one by one. These policies and methods gave the regulations to the producing and rotation fields respectively. They may make some impaction to market in shout run, but in the long term, they will make further effects to the whole competition of automobile industry in out country and make the trade market sound and consequent.