Choose The Path Of The Chinese Auto Industry To Compete Effectively

On the basis of analyzing industry organization conditions, consumption conditions, technology conditions and international environment faced by Chinese auto industry, this paper explores its global competitiveness, finds the gap compared with international cars manufacturers and points out the negative and active impact on Chinese auto industry after Chinese WTO accession. In the end, combining with the other typical industry development experience in china, the conclusions are reached that Chinese auto industry is at turning point, and it is important to draw lessons from the past experience. However, the fact has to be accepted that die optimal period has become history during which auto industry competitiveness could be upgraded in virtue of some excellent enterprises fostered through domestic market competition.The following dominant question is that what Chinese car industry will target and how develop under above conditions and conclusion. This paper holds the basic view that its' targeting accuracy in the future should be global jumped-up auto production base. Global car production base can be divided into three types on according to international auto industry development experience: the early one presented by Occident countries, the one generated from import substitution presented by Japan and Korea, the jumped-up one presented by Canada, Spain, Mexico. As one main subsequent car production country, the international environment and various conditions under which Chinese car industry develops are different from other subsequent countries, and it doesn't qualify the terms Japanese and Korean auto industry development did, moreover, says nothing of Occident countries. However, china has wider market than Japan and Korea, and she can enter global cooperation recurring to this advantage and foster our car industry's competence. What more, concurring with our further external open and entrance to WTO, china will penetrate global auto market deeply, and participate in the international labor division system. Through absorbing car multinational corporations to work on our land or cooperation with indigenous firms, the global competitiveness of our car industry and enterprises can be upgraded, and the self innovative capacity and sale-brand maybe be formed gradually. We are the fourthly car production country until now, and by 2005 we has chance to become the third country behind US and Japan. With the enlarging scale a rising global competence of car industry, china will not only meet national demand but also export in batches, and become the car production base which plays significant influence on the world.Reviewing the development history of international car industry within decades, the subsequent rising countries and areas follow two kind typical patterns: one called "self development pattern" presented by Korea, the other called "entire open-up pattern" presented by Spain, Canada, Mexico. But china will copy neither, and she should base herself on conditions home and abroad and potential advantages to refer to experiences and lessons from car industry development, especially from the subsequent rising countries, in order to make choice suited us. Writer holds that this new pattern can be summed up "establishing competitiveness of great country in open-up " which covers the following meaning. Firstly, open is the basis and we should participate in international division system, acclimate to not refuse the tide of car industry globalization within the frame of WTO. Among the subsequent rising development country, china couldn't exclude some protection to weak industry, yet we shouldn't depend on these protection measures but participate in international labor division system deeply and broadly. Secondly, self-advantage should be utilized and fostered adequately in open-up. Some advantages referredahead belong to comparison advantage. However, comparison doesn't equal competition advantage. The key is that self-institution, strategy and policy should be adapted to invert potential comparison advantage into competition advantage in the open condition. Thirdly, among this advantage, the one which great country equips is predominant and easy to form feature in the new pattern at which Chinese new pattern can be distinguished from the international one.To realize the stated targeting pattern, what we have to do foremost is to adjust our present consumption policy which has the equal role to realize the competition advantage with great country. Second is mat valid competition should be aimed to construct scale competition in industry angle and scale competition in sub-industry angle by Chinese auto industry which is delamination competition and span collaboration. In the end, the exploitation of saloon cars, key components of cars and key technology of electromotion cars, as well as the formation of Chinese characteristic technology criterion system of auto industry should be the strategic aim in the future decade to twenty years. To realize this technology aim, we can choose to pursue multinational corporation and form self innovation capacity, to cooperate with consultation or exploitation enterprises in global car industry, or annex them to exploit product with freedom knowledge property right and form self exploitation capacity, or give priority to us and synthesize other's strongpoints to develop our own product.