Transformation of China's automotive building sector

Abstract

China's automotive industry is recovering rapidly in 2022 and is directly affecting the economies of many countries, and the electric car market is competing with the world's largest car companies and is the most promising for investment. Cars have revolutionized the concept of mobility, making it easier for goods and people to move around geographical regions than ever before. Over the decades, developed countries have witnessed how increased vehicle ownership and improved transport infrastructure have led to countering urbanization - the migration of people, businesses and industry from cities to the recently underdeveloped suburbs. This trend is spreading to emerging economies. There is one car for every five people worldwide; in the US there is one car for 1.25 citizens. However, in China, despite the 300 million cars per 1,000 people, there are only 173 cars. But, in 2009, the Chinese car market became the largest in the world, surpassing the US market in both sales and production. The automotive industry has provided 5% of the country's annual GDP annually since 2002, and accounted for 7.4% of GDP in 2010. Cars can improve the quality of life by increasing mobility, comfort and safety.

For the Chinese society, the automotive industry has always been an attractive topic. On the one hand, this industry has long remained outside the system of state planning. Due to the emphasis on industrial capital goods rather than consumer goods, the passenger vehicle sector (including car manufacturing) has not been a key industry for decades, which is a typical Gerschenkron strategy of industrialization. It was only after China's "automotive policy of 1994" that car production was recognized as a national industry, along with the entire automotive sector. This, in turn, has led not only to an increase in the number of car factories, but also to a deterioration of the air in the country. This, of course, had an additional negative impact on people's lives, forcing them to leave the city to live in cleaner areas.