CHINAâS AUTOMOBILE INDUSTRY AND WTO ACCESSION (CRS Report for Congress)
| Release Date |
July 7, 2000 |
| Report Number |
RS20624 |
| Report Type |
Report |
| Authors |
Thomas Lum, Foreign Affairs, Defense, and Trade Division |
| Source Agency |
Congressional Research Service |
Summary:
Within the next ten years, China (PRC) is expected to have a significant market for passenger
cars.
China's accession to the World Trade Organization (WTO) and permanent normal trade relations
(PNTR) status would promise to open this market to foreign trade and investment. However,
American automobile and parts manufacturers face several obstacles in their efforts to gain market
share in China. First, American companies in China, such as General Motors and DaimlerChrysler,
face stiff competition from German, Japanese, and Korean producers. Second, although the PRC
pledges to reduce or eliminate tariffs, quotas, and local content requirements and grant foreign car
companies greater distribution and financing rights, Chinese central and local governments may still
find ways to protect domestic companies and facilitate Chinese production of cars. This report may
be updated as warranted.
