earticle

영어

This paper deals with the effectiveness of industrial policy about Chinese motor industry. Some issues that have much influenced on the development of Chinese motor industry such as concentration of production, foreign capital policy, passenger car development policy, R&D policy, imports policy are analyzed. The performances of industrial policy on motor industry could be evaluated largely as poor and policy implications are summarized as follows. First, the concentration policy by central government can hardly be continued constantly and replaced by market principles soon. Many questions about the effectiveness of industrial policy by central government are strongly raised in argument. Especially policy duality, targets on production and demand, lacks of competition policy, weak administrative power of central government are regarded as both ambiguous and unrealistic.Secondly, the development of Chinese motor industry depends heavily on the role of foreign capital after the period of Entry into the WTO. The restriction on the foreign capital has been used as a policy instrument to regulate the market entry of auto makers, but the liberalization of foreign capital would play an important role to modernize all the fields of automobile industry.Thirdly, the promotion policy of passenger car industry can be evaluated as a policy failure, even though it has contributed to increase the car production, because it has emphasized the protection of auto makers rather than facilitating competition between auto makers and resulted in weakening the competitiveness.Chinese government is expected to promote the competition between car models to overcome the above mentioned policy restrictions. Furthermore, restructuring of the auto makers would be speeded up by mergers and acquisitions. On the other hand, the regional disequilibrium of economic growth would be expanded and influence negatively on the competitiveness of motor industry. These environments surrounding car market imply the importance of negotiation with regional governments which have stronger power to decide industrial policies than before entry into the WTO, if one want to operate transplant for car production in China.