FDI’s Influences On Chinese Auto Industry International Competition

Based on Professor Potter’s diamond model, this paper launched the foreign direct investment’s influences on the key elements of Chinese auto industry international competition, furthermore explored the methods and mechanisms of the international competition from FDI. As a starting point, this paper analyzed the FDI’ influences factors of Chinese auto industry in international competition, made a qualitative description and empirical research. According this, put forward some ways and measures to promote international competitiveness of Chinese auto industry, and give reasonable advice and analyze.Through investigating the demand condition of Chinese domestic market, found that FDI promote the market growth, what’s more, FDI formed a professional and critical customer groups. In Chinese auto industry, FDI’s affection is mainly reflected as follows:optimized the human resource structure, promoted capital accumulation and improved technology progress. In addition, FDI also affected relevant industries and supporting industries, mainly represented as:the "promotion effect" in upstream industry and the "diffusion effect" in relevant industries. Furthermore, in terms of market competition and enterprise strategy, and played an important role in Chinese auto industry.By empirical research, this paper focused on the influence factors of Chinese auto industry international competition from FDI. On the basis of theory, using Eviews6.0software to carry out stationary test and co-integration regression, granger test. Based on the diamond model, the key influence factors of the automobile industry international competition was discussed in detail, and analyzed the promoting path and mechanism of international competition from FDI. And through the empirical analysis to further verify the relationship among Chinese auto industry international competition, the level of research and development as well as FDI, found that the relationship was long and stable. And on the basis, this paper supplied the specific policy recommendations for the enterprise and the governments.