China's Economic Overview And Industry Analysis: General Motors In China
China’s Economic Overview and Industry Analysis
China has the vital role to play in the world. It holds the second largest rank in the world when it comes to economies based on purchasing power and gross domestic product. China is the one of the foremost exporter and second leading importer of several …show more content…
Since the beginning GM has been creating tremendous profits in china but at the end of year 2004 they were found threatened with several issues. To keep the control of the driving seat the Chinese government hasplanned to bound the foreign investment to 50% with the government enterprise to have the control in their own heights. As the part of their macroeconomic policies the government of china has imposed a ban on the automobile financing to overcome the restraining inflation.Further more government might allow the foreign exchange rate grow significantly which would as a result decrease the competition in China vehicle industry The automobile manufacturing, a key sector in China’s modernization and industrialization effort (CRS Report for Congress 2009).
The economic growth and industrial development in China over the last decade has been of considerable interest to industry (Oliver et al. 2009). Due to tremendous inflationary pressures government has imposed the credit limitationto restrain vehicle purchases. China’s fast economic growth has supported the point of view that in future more and more Chinese would purchase the car. Due to un-equal income allocation as a result of which top 20% of the China’s population would soon be able to buy vehicles. Auto analyst Mr. Zhongexpensive or cheap, the market for automobiles in China appears