China's Auto Industry In The Global Value Chain Of The Transference

In the history of automobile industry, four major transfers took place around the world. The previous three transfers featured the development pattern that began from producing low-grade cars and ended up being one of the world's most heavyweight players. With the fourth transfer in progress, China is sure to suck in a spate of international capitals given the technological transformations and market expansion needs of the auto industry. In addition, the worldwide division of labour down the value chain has given developing countries an opportunity to integrate into the global network of production. As a major outsourcing producer, China has to figure out how to rise to the occasion to boost its auto industry.Based on the classic theories of industrial transfer and the value chain analysis, the causes, course and approaches of auto industry transfer are explored, together with the mechanism that leads the outsourcing production country up the stream with the help of industrial transfer. By conducting an evaluation to China's performance in the global transfer, this paper attempts to determine whether China is halting at a low-grade level or moving upward the value chain, and to discuss the problems of China's auto industry development. Finally the development model and strategy are brought up on how to grab the current chance to upgrade China's auto industry. Based on insight into the development of China's auto industry, this study takes foreign investment and independent development as separate models to focus on. By integrating China's auto industry with the global value chain in the context of today's auto industry transfer world-wide, this thesis discusses the feasibility of combing foreign investment and independent development. More specifically the key points of using foreign investment and the methods to sustain independent development are touched upon with the hope of bringing realistic inspiration into virtual practice.