{ "id": "R40924", "type": "CRS Report", "typeId": "REPORTS", "number": "R40924", "active": false, "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department", "versions": [ { "source": "EveryCRSReport.com", "id": 409836, "date": "2012-06-25", "retrieved": "2016-04-07T00:02:57.621369", "title": "China\u2019s Auto Sector Development and Policies: Issues and Implications", "summary": "The automobile industry, a key sector in China\u2019s industrialization and modernization efforts, has been developing rapidly since the 1990s. In recent years, China has become the world\u2019s largest automotive producer, with annual vehicle output of over 18 million units in 2011. China is now also the world\u2019s biggest market for automobile sales. Meanwhile, China\u2019s auto sector development and policies have caused concerns in the United States, from automotive trade, China\u2019s failure to effectively enforce trade agreements and laws, to market barriers and government policies that increasingly favor Chinese manufacturers, which could affect business operations and prospects of international companies doing business in (or with) China. \nChina\u2019s auto industry has developed extensively through foreign direct investment, which has come in the form of alliances and joint ventures between international automobile manufacturers and Chinese partners. These international automobile manufacturers, who generally dominate the higher end of the Chinese market, have focused on making cars for China\u2019s large and fast-growing market. The domestic Chinese automakers, who occupy the lower end of the market, struggle to improve design and quality to expand sales overseas.\nChina exports and imports relatively few vehicles. Most of the cars produced in China stay in China and its vehicle exports are mostly light trucks and passenger cars shipped to developing country markets. Automotive trade between the United States and China has increased in recent years, primarily in auto parts. In 2011, the United States imported over $12 billion in auto parts from China, making it the second-largest source of auto parts for U.S. imports (behind only Japan). Many of these imported parts are aimed at the aftermarket, as most of what China exports to the U.S. market now are standard products such as brake parts and electrical parts. But with high rates of investment and growth in China by the leading U.S. manufacturers of both cars and parts, major motor vehicle companies are increasingly sourcing parts from China. \nThere have been a number of auto sector trade disputes between the United States and China, addressing issues such as China\u2019s implementation of its WTO obligations, failure to implement an effective IPR enforcement regime, market barriers such as high tariffs on vehicle imports, export restrictions of raw materials such as rare earths, and various forms of government assistance to domestic auto and parts companies, such as tire producers. \nAn emerging issue is that the Chinese government\u2019s policies and measures are becoming increasingly restrictive towards foreign auto companies, while at the same time giving preferential support to its domestic car makers. As the central government designates clean-energy vehicles and their components as one of the seven \u201cstrategic and emerging\u201d industries (in which it aspires to become a world leader), foreign companies, such as GM, reportedly have been pressured to transfer technology and/or help their Chinese partners to develop these new technologies. These new restrictions and conditions imposed by the Chinese government have caused concerns among global auto companies regarding the business environment in China and how these measures may affect their business operations, growth plans, and competitiveness. \nThis report provides an overview of China\u2019s auto sector development: vehicle production, sales, market drivers, foreign and domestic manufacturers, and automotive trade. It examines how the Chinese government policies and measures guide and often direct China\u2019s auto sector development. In addition, this report discusses the prospects and implications for global automakers operating in China.", "type": "CRS Report", "typeId": "REPORTS", "active": false, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R40924", "sha1": "4f22179ea65d484713b9cebbd8b9757b7f3218d4", "filename": "files/20120625_R40924_4f22179ea65d484713b9cebbd8b9757b7f3218d4.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R40924", "sha1": "7923504315f18d216f08679be6b295e6826b33b3", "filename": "files/20120625_R40924_7923504315f18d216f08679be6b295e6826b33b3.pdf", "images": null } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc689163/", "id": "R40924_2009Nov16", "date": "2009-11-16", "retrieved": "2015-08-03T15:06:47", "title": "The Rise of China's Auto Industry and Its Impact on the U.S. Motor Vehicle Industry", "summary": "This report provides background information on China as a major auto producer and consumer, and it discusses the foreign and domestic producers in Chinese motor vehicle industry.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20091116_R40924_24069cb419aa2522559c6d2084563d277230030d.pdf" }, { "format": "HTML", "filename": "files/20091116_R40924_24069cb419aa2522559c6d2084563d277230030d.html" } ], "topics": [ { "source": "LIV", "id": "Foreign policy", "name": "Foreign policy" }, { "source": "LIV", "id": "Foreign relations -- U.S. -- China", "name": "Foreign relations -- U.S. -- China" }, { "source": "LIV", "id": "Foreign economic relations -- U.S. -- China", "name": "Foreign economic relations -- U.S. -- China" }, { "source": "LIV", "id": "Automobile industry", "name": "Automobile industry" } ] } ], "topics": [ "Economic Policy", "Foreign Affairs" ] }