Impact Of Bilateral Relations On Sales Of Foreign Brand Cars

Now,China has become the second largest automobile market after the United States,and many automobile manufacturers also pay close attention to the development of the domestic automobile market.However,in recent years,some countries have had bilateral conflicts with China,which to some extent hurt the feelings of the Chinese people.Will this bilateral relationship conflict cause domestic consumers’ aversion to hedging against Turkestan brand cars?From the perspective of microeconomics,we analyze the impact of bilateral relations on the sales of foreign brand cars,so as to provide reference for the development of China’s automobile industry.We select the 15 years of rapid growth of China’s automobile sales from 2004 to 2018,and analyzes the data by country and province of foreign brand cars by analyzing the data on passenger car licenses across the country during the 15 years.Using the method of double differential,four double differentials are constructed.The model is analyzed to study the impact of changes in the bilateral relations between China and South Korea and China and Japan on the sales of Japanese and Korean cars.The results of the study show that in the long-term range of 15 years and the short-term range of 3 years,the changes in Sino-Japanese relations cannot significantly affect the sales of Japanese cars in China,nor can it significantly affect the sales of other foreign brands other than Japanese cars.Sales:In the long-term period of 15 years,changes in Sino-Korea relations cannot significantly affect the sales of Korean cars in China,but the deterioration of Sino-Korea relations in the short-term within 3 years will significantly negatively affect the sales of Korean cars in China.In general,the bilateral relationship has a relatively small and short-term impact on the sales of foreign-owned brands.In this regard,we suggest that domestic governments and enterprises need to actively improve the level of domestic automotive technology,and reduce dependence on foreign-owned automotive brands.