Quite a lot of Chinese passenger car manufacturers have imported advanced technologies by establishing joint ventures or cooperating with foreign partners to optimize the products structure, improve the development and manufacturing level of new products. Many well-known middle and large passenger foreign car manufacturers have gradually entered Chinese market. Now China has initially mastered the advanced technology in passenger car's body and underpan manufacturing.
China is a developing country with a large population and a dense urban population, where the proportion of senior citizens is rapidly increasing. Moreover, people's income is relatively low and the road area ratio is low as well. All these bring opportunities for China to improve urban public transportation which will be different from foreign countries’ and will have its own characteristics. As top-priority is given to public transportation development, and as the public transportation structure mainly relies on buses, the middle and large passenger cars market has bright prospects during the process of urbanization.
As the products imported or manufactured under a joint venture mode are basically at the same grade as the original ones except they are cheaper, foreign enterprises have good expectations of Chinese top-grade middle and large passenger cars market. As a result, those profit-driven foreign enterprises are more actively seeking joint investments and cooperation opportunities in China, which will also bring opportunities for China's passenger car manufacturers to participate in international cooperation and competition.
China's entry into the WTO will increase the competition pressure in middle and large passenger car industry not only to domestic manufacturers but also to the foreign enterprises entering Chinese market. Before China entered into the WTO, foreign passenger car and components manufacturers were obstructed from the Chinese market by protection measures such as high tariffs. Now they are swarming into China to seek partners and secure a marketplace. Some have established the ground thanks to joint investments or technology cooperation. Having entered into the WTO, China will have more flexible policies concerning project investment, technology transferring, marketing, after-sale service system and so on, which will undoubtedly provide more chances for domestic manufacturers to contact with the transnational enterprises overseas and melt into the world market. Consequently, Chinese passenger car manufacturers will have more opportunities to enter into the international circle and improve the export capacity. In conclusion, with larger possibility to melt into the global system, a bigger space formed for the healthy development of domestic passenger car manufacturers.
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