By Kelly Sims Gallagher
Chinese language creation of autos rose from 42,000 automobiles in step with yr in 1990 to 2.3 million in 2004; the variety of passenger autos at the highway doubled each and a part years in the course of the Nineties and maintains to develop. In China Shifts Gears, Kelly Sims Gallagher identifies an extraordinary chance for China to "shift gears" and keep away from the standard difficulties linked to the auto industry--including city pollution brought on by tailpipe emissions, greenhouse gasoline emissions, and excessive dependence on oil imports--while spurring financial improvement. this change will in basic terms ensue if the chinese language executive performs a management function in construction household technological ability and pushing international automakers to move purifier and extra energy-efficient applied sciences to China. If each new vehicle offered in China had the cleanest and such a lot energy-efficient of the automobile applied sciences already on hand, city pollution might be minimized, emissions of climate-altering greenhouse gases will be below projected, and the chinese language automobile may proceed to flourish and give a contribution to China's regular fiscal improvement. yet up to now, Gallagher unearths, the chance to shift gears has been missed.Gallagher seems intimately at 3 U.S.-Chinese joint ventures: Beijing Jeep, Shanghai GM, and Chang'An Ford. those case experiences are dependent on unique learn, together with interviews with ninety govt officers, undefined representatives, and specialists in either nations. Drawing from the case reports, Gallagher explores the bigger problems with the environmental and financial results of expertise move within the vehicle and the coverage implications of "leapfrogging" to extra complicated know-how.
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Additional info for China Shifts Gears: Automakers, Oil, Pollution, and Development (Urban and Industrial Environments)
2. Protectionism and technology transfer. The Chinese government also decided to protect all manufacturers located in China (including the joint ventures) from international competition by establishing import quotas and stiff tariffs (80–100 percent) on both vehicles and parts. It continued to limit foreign ownership in joint ventures to 50 percent to give the Chinese partners more control and bargaining power. Another major change was the placement of specific requirements on foreign investors.
Conclusion This brief history reveals that Chinese government’s automobile industry policy has flip-flopped several times since World War II, and that its policy signals aimed at foreign investors have been inconsistent. Initially, the government sought technology and training from the Soviet Union to create a foundation for China’s own automobile industry. S. and Japanese auto industries were innovating and realizing tremendous growth in production. During this period of isolation, the Chinese government fragmented the industry geographically, and eventually passenger-car production actually ceased.
But foreign firms cannot bear the entire brunt of the blame because the Chinese government’s policies toward the sector have been inconsistent and sometimes contradictory, as is discussed in more detail below and in chapter 4. Moreover, local governments, who own most of the Chinese auto companies, have been resistant to central-government intervention. The Structure of the Chinese Auto Industry As of 2005, twelve foreign-invested joint ventures dominated the Chinese domestic passenger-car market, with about a hundred small firms on the periphery.
China Shifts Gears: Automakers, Oil, Pollution, and Development (Urban and Industrial Environments) by Kelly Sims Gallagher