China's Auto Industry, Research,

China's entering WTO brings not only new opportunities but also great challenges to motor vehicle industry. Motor vehicle industry connects with several industries and is one of the backbone industries for the economy of a country. So it is significative and urgent to study how to optimize the organization of the industry, how to distribute resources reasonably, and how to make the motor enterprises competitive in the world market.Using the theory of industrial organization especially the SCP model, this thesis first analyses market structure, market conduct, and market performance of western developed countries to get the common character of motor vehicle industry; and then analyses China's condition to compare with. On the one hand, China's motor vehicle industry has great difference with western countries in production scale, technology, service quality, innovation ability etc. There are many small-scale plants that are in red. On the other hand, some large-scale plants although also have the same problems make great profit. The main reason is administrative monopoly caused by high protection from government, such as high customs, non-custom trade barriers, regional protection etc. These protections will be inevitably reduced after China entered WTO. So to face the world competition, motor enterprises should be reformed and remodified into larger scale and more competitive ones as soon as possible. Due to the special condition of China, it's the government's responsibility to preside the merger of motor enterprises. But after that, government should exit quickly and entirely. Because building fair market by opening the market to both foreign capital and private capital (especially private capital) to stimulate the innovative mechanism is the only way to help Chinese motor enterprises develop more rapidly to compete with huge competitive foreign enterprises...