The Impact Of FDI On China’s Automobile Industry

With the development of China’s automobile industry,foreign automobile enterprises have come to China to invest.Although Japanese automobile enterprises entered China’s market relatively late,they occupied a larger market in a short time.Japanese automobile enterprises began to invest in China in the 1980 s,and established many joint ventures such as GAC and Toyota.The investment structure has gradually developed from focusing on mid-range cars to taking into account both mid-range cars and luxury cars,and its automobile investment scale has also been expanding,reaching the peak in 2012.Although in the past three years,due to various problems such as economy and technology,the market share of Japanese automobile enterprises in China has begun to decline,and the output and sales volume have also shrunk,Japanese automobile enterprises have always brought far-reaching influence to China’s automobile market and China’s automobile enterprises.This paper mainly discusses the impact of Japan’s FDI in China’s automobile industry on China’s automobile industry.In order to further clarify the research direction,this paper selects the impact on the international competitiveness of China’s automobile industry as the research angle.Firstly,this paper reviews the relevant research on FDI and industry competitiveness theory,and summarizes the path of international trade on technology spillover effect,as well as the specific impact of technology spillover effect on national production.Secondly,from the perspective of Japan’s automobile industry investment in China,this paper explores the investment structure of Japan’s automobile industry in China,the history and current situation of Toyota’s investment in China,the history and current situation of Honda’s investment in China,and the history and current situation of Nissan’s development in China.Finally,based on the theoretical review,an empirical model is established to analyze the impact of FDI on the international competitiveness of China’s automobile industry through multiple regression,and find out the main influencing factors.In view of the related problems,this paper puts forward the analysis and suggestions,and puts forward the relevant strategies for the international competitiveness progress of China’s automobile industry.The empirical results show that the international competitiveness of China’s automobile industry is mainly affected by Japan’s investment in China’s automobile industry,product quality and education level.The international competitiveness of China’s automobile industry mainly depends on Japan’s investment in China.The Greater Japan’s investment in China,the more mature the international competitiveness of China’s automobile industry will be.The impact of product quality on the international competitiveness of China’s automobile industry is negative.Ignoring the cost and excessively strengthening the quality adjustment will increase the production and manufacturing costs of automobiles and reduce the competitive advantage,At the same time,the independent technology research and development is limited by the current research foundation in China,which can not affect the international competitiveness of China’s automobile industry.