| Extensive (?)peration has been established with enterprises from more than 20 countries of the world, and the auto industry has drawn on 40 percentage of the whole industrial capital. 24 MNCs of the Fortune Global 500 manufacturing auto products have invested in the joint ventures of China.FDI has evidently promoted the competition of auto industry and eliminated inefficient enterprises, forming a stable environment for development. Entry deterrence has also been built up through capital scale, scale economy, absolute cost advantage, product differentiation as well as government policies. Increasing investment has offset the capital gap, improved the economic benefit and adjusted the industrial structure. Manufacturing standard has also been highly advanced brought by the technique transfer to make the enterprises innovate independently with late-development advantage. However, due to the limited technique transfer, strict blockage of core technique and the disability of assimilating, FDI hasn't been fully utilized. Weak spill-over effect, lack of product factors, resource and environment restrictions also prevent the development of the industry, but the inflated demands of consumer market and innovation bring more challenges. Accordingly, based on the competitive pattern boosted through the policy guide, the auto industry should make full use of FDI, cultivating environment of product factors, founding independent brands and innovating on the basis of technique transfer and assimilating, enhancing the merge to realize scale economy. |
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