China's automotive industry in the global era, Japanese auto makers, and their China strategies

Abstract

Introduction China, which joined the WTO around the millennium, has rapidly modernized and industrialized in recent years. In fact, China's development has been so great that it has been called “the factory of the world,” and its automotive industry is about to undergo change, too. The Chinese automobile market is expanding quickly and total production has reached 5 million. Sooner or later, domestic demand will increase beyond 10 million. Therefore, China will become the main field of global competition. One of the key factors for the global restructuring of the world's automotive industry at the end of the twentieth century was the business strategies in Asia, especially in China, which has the potential to be the world's biggest market. However, there are still many obstacles and problems to be overcome before China becomes the world's biggest automotive market and automobile-producing country. These are macro and micro problems, including problems of how to tolerate the social allocation of resources and personal mobility, including traffic, environmental and energy issues, as a social system. China has become one of the leading producer nations for appliances, electronic devices, personal computers, and two-wheelers surprisingly quickly, and, depending on the product, has even become the world number one. However, in order to succeed in the automotive industry, you need the ability to construct complicated parts, advanced technologies for electronic devices, and information and communications, and also extremely advanced technologies for design, development, and production.