The Automotive Industry in China: Past and Present

Abstract

This chapter traces the emergence, expansion and diversification of the automotive industry in China through the lens of changing industrial policy priorities, exploring the implications for innovation and employment relations. Limitations of a joint-venture-centred model in developing domestic brands and NEVs have induced recent policy shifts in favour of private domestic manufacturers, increasing the pressure on global OEMs to innovate. At the same time, and despite increasing labour cost, employment relations continue to be characterised by segmented labour markets, precarious employment and conflicts. While China’s push for NEV development has ripple effects on global markets and the innovative capacity of the industry as a whole, a break with established labour practices is unlikely.