Foreign Investment: The Automotive Market in China

Why have foreign corporations invested heavily in the Chinese automotive industry? How has this inflow of products, supplies, technology and financial support affected the Chinese car market? Without foreign investment that accompanied the Opening Up, would China’s economy resemble its current state? In just over 50 years, China has been able to turn its once weak and slowly-expanding automotive industry into an important and powerful global giant. Through analyzing the development of China’s car market together with political, economic, and cultural ramifications of foreign investment, this paper will express the significant influences of foreign support. Historical facts and quantitative information will coalesce to validate the idea that foreign investment heavily affected the growth of the Chinese automotive market