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To Be or Not to Be: China's Auto Industry
China's automotive industry must adopt effective means to tackle the unprecedented challenges it will face after the country enters the World Trade Organization ( WTO), says the latest issue of Outlook, the country's most authoritative news weekly.
"After China joins the WTO, the automotive industry will face great challenges from the outside, so the industry is at a crucial historic moment," the magazine's June 5 issue says in a signed article.
As globalization is an irreversible trend in the development of the auto industry, China's automotive industry will unavoidably be driven into this trend, whether China joins the WTO or not, the article argues.
Faced with globalization, China's automobile sector has weaknesses such as small scale, irrational allocation, and low efficiency.
At the same time, the global auto industry is shifting to developing countries in the process of globalization. "That means globalization not only brings about challenges, but also provides opportunities for China. The crux of the problem is how to create the best investment environment to attract foreign investment," the article says.
Since combining domestic motor enterprises to form several huge enterprise groups and building small joint ventures have both proved ineffective, the article puts forwards a better alternative, that is, Sino-foreign cooperation on a large scale.
The ideal partner for China's automotive industry would be large multinational enterprises that are not only willing to set up research centers in China, but also intend to build large-scale production bases, the article says.
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