China's Auto Industry Policy Research

In 2009, the vehicle production of China was 13.791 million which was the highest in the world, and there was an increase of 48% compared with the number in 2008. On the other hand, the vehicle sales were 13.6448 million in 2009, the highest in the world too, an increase of 46% compared with 2008. However, there are still many significant gaps between China and whether American or Japan or Europe, especially about the automotive core technology and the ability of independent innovation. Today, the automotive industry is very important for China, and it is also important for us to do some search on China's automotive industry policies. The main content of this study is about the analysis of China's auto industry policies in different periods.There have been many achievements in the automotive industry of China until now. Firstly, there is a rapid growth of automobile production and sales, meanwhile more and more foreigners know the cars made in China. Secondly, as the result of innovation, the production and sales of own brand of China also have a steady growth. Thirdly, there are many mergers and acquisitions among the automotive enterprises in China. Fourthly, a big effort has been made for the cars that use the new energy. However, there are many problems too. Firstly, although the total automobile production of China is very big, but it is very small when we come to the ownership per thousand. Secondly, the automotive core technology and the ability of independent innovation in China are both very weak, compared with whether American or Japan or Europe. Thirdly, the structure of the automobile industry of China is still not effective. On the whole, the competitiveness of the automobile industry of China is still very weak.A lot of industrial policies have been issued since 2004, such as the Automotive Industry Development Policy that took effect in 2004 and the Automotive Industry Adjustment and Revitalization Planning that took effect in 2009. Until now, there have been a lot of improvements in the automobile industry of China, both the quantity and the amount.In order to make a great achievement to promote the development of the automobile industry of China, a few aspects should be pay attention to, such as making more policies to support China's own brand, optimizing the structure of automobile industry of China, improving the competitiveness, implementing more and stricter automotive safety standards and environmental standards, and making an attractive environment for high-quality professionals, especially for the foreigners who want to work in China.