The Impact and Role of Foreign Direct Investment in the Modernization of China’s Automotive Industry

The Chinese automobile industry started late, and its overall development is slow. The main reason is restricted by the imperfection of China’s manufacturing industry. It was not until after World War II that China began to build and gradually improve its manufacturing industry. Therefore, if China wants to develop its own automobile industry, it is not enough to rely on itself. The cycle is too long. Attracting international automobile manufacturers to invest in China is an inevitable result. However, China’s special political system and the importance of the automobile industry also make it impossible for international automobile manufacturers to occupy a dominant position in China’s investment. Nevertheless, it will dominate in terms of technology and brand. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023.