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So imagine in 5-10 years china became a capitalist market, and all these companies had no aid from government, and many more competitiors came into china, id think 90% of these chinese manufacturers would go bankrupt..

except maybe chery and SAIC and FAW

what do u guys think?
 

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China is already way ahead in being a true capitalistic market than say, S Korea or Japan. Try enter either of those markets.

But restrictions and protection measures in place to nurture domestic industries should and must be in place, otherwise China will never have any domestic brands.

Once China's brands are strong enough to stand on their own, wide open capitalisic free market is then the best way to go. True competition brings out the best in everyone. China's brands are not there yet though. Not for at least a decade or more.
 

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China is already way ahead in being a true capitalistic market than say, S Korea or Japan. Try enter either of those markets.
Well, you can't blame Japanese consumers since their domestic cars have the highest quality in the world, all other imports are inferior to their domestic cars.

As for the Koreans, Koreans use distribution and service as means of keeping foreigners out. Foreigners selling their Korean-manufactured cars like GM Daewoo, SAIC, and Renault, in addition to straight imports, struggles to compete with Hyundai's vast distribution and service network that offers the lowest service and repair cost to consumers. It is not the price, but the service cost differential that allows Hyundai to keep the competition out. And only one auto brand offers better quality than Hyundai in the Korean market at the moment, Lexus.

As for China, China is a dream market for foreigners; a booming market, huge growth potential, and weak local manufacturers with uncompetitive product offerings selling only on price alone.
 

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Whatever.

Japan and S Korea shut their doors (absolute protectionism) for decades until their products have matured and fully and completely saturated their market, before loosening the rules (still very strict) to foreign competition. :nono:
 

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Japan and S Korea shut their doors (absolute protectionism) for decades until their products have matured and fully and completely saturated their market
That's how you are supposed to play the game.

China too had an option of taking this safe and proven route to building its domestic auto industry. Instead, Chinese communist planners decided to take the shorter route and lost the farm to foreigners.

The striking difference between Chinese and Japan/Korea is that most of Chinese exports and GDP outputs are by foreign capitals, whereas Japan/Korean industries are run by local capitals.
 

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Real_I_Hate_China said:
The striking difference between Chinese and Japan/Korea is that most of Chinese exports and GDP outputs are by foreign capitals, whereas Japan/Korean industries are run by local capitals.
Agree.

After my recent trip to china, it can't be more evident that the foreign brands are dominating the market. But the chinese brands are not in total extinction.

I believe after the initial phase of capital accumulation, we will see an explosion of Chinese own brands coming out of China. Until then, chinese put their head down and make shoes for foreigners under foreign brands.

But if you think their ambition ends there, you just can't be more wrong.
 

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I think SAIC and Nanjing would survive. SAIC because they are cash rich and own Ssangong. Nanjing because they are making good progress with Western quality cars and in MG and to some extent Austin they aren't totally reliant on the domestic market.
 
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