Wiley
Wiley.com
Print this page Share

Designated Drivers: How China Plans to Dominate the Global Auto Industry

ISBN: 978-1-118-32885-9
320 pages
June 2012
Designated Drivers: How China Plans to Dominate the Global Auto Industry (111832885X) cover image
An in-depth look at the Chinese car industry that sheds new light on the delicate nature of China's planned economy

China's unprecedented growth over the last three decades, along with the recent financial crisis in the West, has raised questions about the superiority of state-led capitalism. In Designated Drivers: How China Plans to Dominate the Global Auto Industry, G.E. Anderson, a specialist in finance and Chinese political economics, uses the auto industry to examine how China's industrial planning works, and explores whether state involvement in the economy really is a winning formula for sustainable growth.

Bringing to light the strengths and weaknesses that define the Chinese economy, Anderson finds that in some ways the government has become its own worst enemy, unable to choose between industrial competitiveness and social stability. While the economy is booming now, evidence suggests that long-term success is far from assured. Tracing the evolution of the post-Mao auto industry through thirteen case studies, Designated Drivers raises the difficult questions about the future of China that few people have dared to ask.

  • Offers a unique insight into the Chinese economy through the lens of the auto industry
  • Explores how successful the central government has been in spurring economic growth and the long-terms costs of intervention
  • Uses case studies to illustrate China's explosive growth over the last three decades

A painstakingly researched analysis of the Chinese automobile industry, Designated Drivers explains the risks and rewards inherent in doing business in China that anyone interested in, or already working there need to understand.

See More

Map of Chinese Provinces and Cities Mentioned in the Book xi

List of Terms and Acronyms xiii

Foreword xix

Preface xxv

Acknowledgments xxix

Chapter One Building National Champions 1

Chapter Two The System 25

Chapter Three The Policy 51

Chapter Four The Joint Ventures 103

Chapter Five The Independents 137

Chapter Six The Mergers 187

Chapter Seven The Neighbors 219

Chapter Eight In Conclusion 243

Appendix A List of Passenger Vehicle Assembly Joint Ventures 267

Appendix B Additional Data 271

Selected Bibliography 275

About the Author 287

Index 289

See More

G.E. Anderson is a specialist in finance and Chinese political economy who has been either living in or frequently traveling to China for nearly two decades. He recently completed a PhD in political science at UCLA, where his research focused on industrialplanning, business-government relations, and corporate governance. Anderson has worked as a teacher, commercial lending analyst, and CFO of a nonprofit organization. Prior to attending UCLA, he was finance director for Charles Schwab's Tokyo-based joint venture. Anderson also holds a BS in Finance from Louisiana Tech, an MBA from Golden Gate University, and an MA in Asia-Pacific studies from the University of San Francisco. He is a contributing writer for Forbes and a political risk and strategy consultant at his firm, Pacific Rim Advisors and blogs at ChinaBizGov. Visit his website at www.DesignatedDrivers.co.

See More
May 22, 2012
New Book Offers Detailed Analysis of Chinese Car Industry That Clarifies On the Delicate Nature of China's Economy

Forbes contributor G.E. Anderson goes beyond the car industry to examine the underpinnings of the Chinese economic system in Designated Drivers: How China Plans to Dominate the Global Auto Industry (Wiley; April 2012; ISBN: 978-1-118-32885-9).

Based on in-depth research, including over 100 interviews of professionals, academics and government researchers with connections to China's automotive industry, Designated Drivers offers anyone currently doing business in China or considering taking the plunge with some much-needed light on the nature of ownership, business-government relations, central-local relations, innovative capacity, and the perceived role of foreign players in China.

Designated Drivers presents an insightful analysis of the Chinese automotive industry and, in the process, reveals the overall political principles that drive economic decision-making at the top of the Chinese system. The book traces the evolution of the post-Mao automotive industry through 13 case studies, with discussions on how successful the central government has been in achieving its objectives and how sustainable a path the central government has created to make its automotive industry globally competitive. 

Readers will gain valuable insights from Designated Drivers as it:

  • Explains how China was able to build a competitive industry from scratch while transitioning from a planned economy to one that is more market-oriented
  • Offers insights on various aspects of China's automotive industry, including prominent mergers of the past decade, Chinese-foreign joint ventures, and the "independent" Chinese automakers
  • Illustrates the major determinants of success and failure in China's industrial planning model
  • Compares the start-up periods of the Chinese, Japanese, and Korean automotive industries, with a focus on ownership, key institutions, technology acquisition, foreign involvement, and industry support and structure.

Engaging and well-researched, Designated Drivers places the seemingly conflicting forces of China's unique political and economic systems in perspective.

Hardcover and e-book now available

Visit http://www.wiley.com/buy/9781118328859 for links to purchase online.

About the Author

G.E. Anderson is a specialist in finance and Chinese political economy who has been either living in or frequently traveling to China for nearly two decades. He recently completed a PhD in political science at UCLA, where his research focused on industrial planning, business-government relations, and corporate governance. Anderson has worked as a teacher, commercial lending analyst, and CFO of a nonprofit organization. Prior to attending UCLA, he was finance director for Charles Schwab's Tokyo-based joint venture. Anderson also holds a BS in Finance from Louisiana Tech, an MBA from Golden Gate University, and an MA in Asia-Pacific studies from the University of San Francisco. He is a contributing writer for Forbes and a political risk and strategy consultant at his firm, Pacific Rim Advisors and blogs at ChinaBizGov. Visit his website at www.DesignatedDrivers.co. 

See More
Back to Top