Empirical Study On The Impact Of Industrial Policy On The Development Of China's Automobile Industry

Being the largest automobiles maker and buyer in the world, Chinese automobile manufacturing has developed rapidly due to economy boom since reform and opening up. Our country published 3 automobile industrial policies in 1994,2004, and 2009, which are known as <Industrial policy of Automotives>,<Developing policy of Automotives>, and<Adjustments and enhancement of Automotives>.Based on current situation, this paper uses Co-integration and model-establishing to proof and demonstrate the relationships, effects from policies to industry itself, as well as the interactive mechanism and process between them. The further logic context has been clarified and some conclusions and improvement proposals has been made.Firstly, China's industrial policies grew mature and rational through several adjustments which taking continuously enriched indirect guidance rather than directly intervening. Automobile policies are now pushing the industry forward to a very prominent position—the largest automobile manufacturer and buyer in the world, and changed from failures or even holding back. The next move shall be accelerating tech progress, increasing industrial concentration and market share of Chinese brands, realizing economies of scale. Secondly, despite of some deficiencies and shortages, China's automobile industry is going to be a pillar industry, which indicated that recent policies worked well. Thirdly, indirect policies like research investment guidance, tax ratio, or credit control could steadily drive the whole industry forward. Policy making should give prominence to technological and structural policies, which may lead to the organizational and distributional adjustment of the industry.