Study On The Role Of Government In Automotive Industry

With the enhancement of the trend in economic globalization, the revolution of science and technology is developing rapidly. The adjustment of industrial structure is fast-paced and the international competition becomes more intensified. China is facing great opportunities and challenges as well as the automotive industry. It is well known that the auto industry is of high relevancy and huge scale effects, and its development is able to bring along other industries. Therefore, automotive industry has become one of the mainstay industries in our country. Nowadays, an automobile has been regarded not only as a transportation tool, but also a necessary part to improve the quality of life. Automobiles become more and more popular in China.From other countries'developing mode of automotive industry, we can find out that we cannot develop our automotive industry rapidly without the governmental support and protection. Only when our government gives intensive care and support, fully utilizes the policy regulating and controlling measures, correctly deals with the relationship between automotive development and social progress, therefore, our country's automotive industry could develop rapidly. This paper describes the role of government played in the development of automotive industry from the point of development history of automotive industry, based on the theory of industrial policy. The paper is composed of five chapters. The first chapter is an introduction, mainly addresses the present status of the automotive industry of our country on the whole, and also proposes the study purpose of the governmental function in the automotive industry. The second chapter addresses the domestic and overseas development history and present status of the automotive industry, with detailed description. The third chapter discusses the related theories of the government's role and gives a comparative study on the policy practice. This chapter also points out the necessary function of the government in the development of the automotive industry, and addresses the close relationship between the development of automotive industry and the government. The fourth chapter deals with the Chinese government's role in the development of automotive industry. Take Shanghai as an example to explain Shanghai governmental protection and support to the development of its automotive industry, with problems currently existed and to be solved later. The fifth chapter discusses the related policy proposals to the optimization of the governmental behaviors, and proposes the strategies the government should adopt in developing the automotive industry.