Influence of WTO Entry on China's Car Industry

Influence of WTO Entry on China's Car Industry Table of Content Influence of WTO Entry on China's Car Industry 1 Table of Content 1 Abstract 1 Chapter 1 Introduction 2 Chapter 2 WTO Commitments of China's Automobile Industry 4 2.1 Chinese commitments on vehicles 4 2.2 Influences of commitments on car sector 5 Chapter 3 Changes Concerning China’s Car Industry under WTO Influence 10 3.1 Changes in legal documents & industry policy 10 3.2 Changes in organization structure 12 3.3 Changes in product mix or product structure 13 3.4 Changes in technology regulations 14 Chapter 4 Current Conditions in China After WTO Entry 15 4.1 Mergers & Reorganizations 15 4.2 Car price slash 16 Chapter 5 Still Existing Problems 17 5.1 Globalization 17 5.2 Foreign cooperation 18 5.3 Environmental protection & City construction 19 Chapter 6 Conclusion 20 Bibliography 20 Abstract Automotive industry as a whole has long been a focal interest of many countries in their path to industrialization. Most developed nations including the United States, United Kingdom, Germany and Japan have all gone through this phase of automotive induced industrialization and this is what China is presently experiencing. The thesis deals with WTO impacts on China's car industry. As an important sector of automobile industry, limited quotas for almost half a century. With China's entry into WTO in December2001, it is undergoing an unparalleled revolution. What WTO brings to Chinese car market is lower tariff rates, more investment and fairer market competitions. In other words, a completely open market will occur in due time. Facing this big challenge, China’s car industry is adjusting itself to WTO commitments during the buffer period of 5-6 years that is granted to this industry. Thanks to these positive measures taken by China's car industry, the first two years after China's accession to WTO witnessed dramatic changes in domestic car market: car price slash and reorganizations between automakers. They are both outcomes market competition. However, there are several problems haunting China's car industry: Although they are still under discussion, sensitivity to these problems will help Chinese car makers survive this turbulence brought by Chinese WTO entry. Keywords: Automotive Industry, Car Industry, Competitiveness, WTO Entry