China's Auto Sector Development and Policies: Issues and Implications [June 25, 2012] [open pdf - 494KB]
"The automobile industry, a key sector in China's industrialization and modernization efforts, has been developing rapidly since the 1990s. In recent years, China has become the world's largest automotive producer, with annual vehicle output of over 18 million units in 2011. China is now also the world's biggest market for automobile sales. Meanwhile, China's auto sector development and policies have caused concerns in the United States, from automotive trade, China's 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. […] This report provides an overview of China's 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's auto sector development. In addition, this report discusses the prospects and implications for global automakers operating in China."
CRS Report for Congress, R40924