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




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

G. E. Anderson

ISBN: 978-1-118-32888-0 April 2012 304 Pages


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.

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