Foreign Technology in China’s Automobile Industry:
Implications for Energy, Economic Development, and Environment

ABSTRACT:

Although there are still relatively few cars in China today, with the accession to the World Trade Organization
demand for passenger cars is expected to grow substantially during the coming decades. To tap into this exploding
market and acquire more advanced technology, all the major Chinese auto manufacturers have established joint
ventures with foreign companies. This paper explores the role of foreign automakers—particularly the Big Three
(Ford, General Motors, and DaimlerChrysler)—in transferring technology. Although these foreign firms have
helped to modernize the automobiles on the road today, emissions control and fuel efficiency technology installed in
Chinese cars is considerably behind European, Japanese, and U.S. levels. Foreign firms and the Chinese government
share the responsibility to correct this laggardness.

18 pages