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Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
A Study of Changes in the Chinese Automotive Market Resulting from WTO Entry
Lily Lin Qiu Lindsay Turner Lindsay Smyrk1
Abstract
The booming demand for motor vehicles in China has made China the most rapidly growing automotive market in the world. The entry of China into the World Trade Organisation (WTO) is expected to accelerate the trend. Although often well established in China before WTO entry, the world’s large vehicle manufacturers have responded to Chinese WTO membership by establishing additional joint ventures and new assembly plants and by the launch of new models. This study analyses the Chinese automotive market prior to WTO entry and forecasts future market trends as impacted by China’s recent entry into the WTO.
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Correspondence to:
Dr. Lindsay Smyrk Victoria University VIC., AUSTRALIA Email: Lindsay.Smyrk@vu.edu.au Ph: +613 9688 4427
Qiu, L.L., Turner, L., & Smyrk,L., ‘A Study of Changes in the Chinese Automotive Market Resulting from WTO Entry’.
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Proceedings of the 15th Annual Conference of the Association for Chinese Economics Studies Australia (ACESA)
1. Introduction
China’s WTO entry has significantly impacted on the Chinese automobile market. The market for automobiles within China has become more transparent and standardized and more like many other automotive markets in WTO member countries. In particular, Chinese law and regulations relating to the automobile market have become more internationalized. In order to fulfil future WTO commitments there will be a need for the Chinese authorities to reduce automobile tariffs and open the market to foreign competition. Consequently, foreign automobile investors have been investing heavily in the Chinese automobile market urged on by China’s high economic growth. The Chinese automotive market grew rapidly from December 2001 (the time of China’s WTO entry) over...