The Impact of WTO Membership on the Automobile Industry in China

Abstract

Many areas of China's economy stand to see change from WTO accession, from agriculture to insurance and banking to telecommunications. Among the sectors affected, the automobile industry, as an old-line heavy industry, seems one of the most open to a global challenge. Since its reorganization in the post-Mao Zedong reform era, China's auto industry has been nurtured in a protectionist environment. Joint venture companies have satisfied domestic passenger car vehicle needs, but price and quality problems have left the industry open to some challenge in a free market post-WTO world.