Effects of Chinese Auto Market on US Economy Research Paper

personal effects of Chinese Auto Market on US Economy - Research Paper Example During the industrial enterprise process of mainland China, the automotive manufacturing has grown rapidly. The growth of the automotive industry of China has become the accelerator pedal for the growth of other sectors as well. The automotive industry of China has directed its attention towards the infrastructure schooling patterns (Zhang, 2003). The automobile industry of China is the major driver of the scrimping of the United States. This market has also compete a vital role in the growth of other industrial economies. When Henry Ford apply the technique of line production in order to produce cars, the product transformed from a sumptuosity item to an essential component of life. The automotive industry of China has evolved as the major driving the economy of China and its workforce. Some of the arguments about Chinese automotive industry focus on the consumption of automobiles in the market o f China and the export approach of the country. According to different indicators, China is open to the foreign investiture like Korea and Japan. These indicators also suggest that China may take a hybrid approach in order to direct its attention towards domestic consumption. At the same time, China may also embodiment vehicles for export in order to produce world-class cars (Business Line, 2002) The automotive car industry of China is export-focused. The industry is very complex and is undergoing a transformation from low-cost to value-added products.The global economic crises have severely influenced the automotive sector of the United States. However, the auto industry of China is growing constantly. The industry has become a vivid focus for foreign car manufacturers. In the year 2008, China produced approximately eight times much vehicles than those produced in the 1990s. The annual production of cars in the automotive industry has allowed China to surpass the United States. The vehicles produced in the automotive industry of China have become very sophisticated with the passage of time. It is because of the partnership of China with major automotive giants including Volkswagen, Toyota, Mazda, GM, Honda, and others. The purpose of this partnership is to boost technological cooperation (ChangAn Automobile Group, 2002).