Import Foreign Automobiles in Chinese

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Questions & Hypothesis

Research questions

1.Why do Chinese consumers prefer foreign cars？

2.what other measures should be taken by government to Chinese automobiles manufactures.

Research hypothesis

- If Chinese government reduces the tax for the foreign automobiles, then the Chinese consumers will buy more foreign automobiles.

- If Chinese government gives the subsidy for the Chinese national automobiles，then the Chinese consumers will buy more the nation automobiles.

Research methods

I use the qualitative method to collect the date. The qualitative methods include observation, unstructured interview, and secondary date. I use two of them. I organized an interview with my roommates. We discuss whether the tax and subsidy goes down or up will influence people buy the car or not. I also collect date from the government website. I collect the table that the influence of tax change for people’s buying automobiles. I also collect the (consumer price index) CPI graph. If people have a high level of income, it will high CPI, which can reflect the people’s consumsition on car in some way.

Tool: questionnaire

Participants

Participants included 120 undergraduate-student (53 males, 67 females). 10 persons are Freshman, 97 persons are sophomore, and junior students is 13. All the people which do the survey are the students and no working people.

Materials

Speed and accuracy were measured using an online number-matching test(https://www.sojump.com). It consisted 7 questions. Participant required to finish in 6 minutes. Scores were calculated as the percentage date.

Procedure

After I had designed the questionnaire, I sent it to my QQ and We chat friends to do the survey. (QQ and We chat seems like Facebook and twitter). After 8 days, I collected the date from 120 persons.

Result

After doing the interview and questionnaire, I get some date. What kinds of automobiles does people like? If people have a high and high income, does their will buy more foreign cars? I also give the survey for subsidy and tax.

[pic 1]

chart 1-0

Chart 1-0 shows the people seem more like foreign car. Why people more like foreign cars. We can turn to chart 2-1 and chart 2-0 in conclusion part. We can analysis that 50% of people think foreign automobiles have high technology, and 26% of people think foreign cars are more comfortable. About 24% of people think foreign cars are more safe. These show the technology is important factor of choosing the cars.

[pic 2]

chart 1-1

[pic 3]

chart 1-2

we analysis the chart 1-1 and chart 1-2. We can see that if government gives subsidy for Chinese cars, 68% of people will buy foreign cars and 32% will buy Chinese car. If government reduces the tax for foreign cars, 78% of people will buy foreign car and 22% will buy Chinese car. Although government gives the subsidy for Chinese car, there also have 32% persons choose the foreign. I think this the technology gaps analysis in chart 2-0 in conclusion part.

[pic 4]

chart 1-3

retrieved from http://www.stats.govt.nz/browse_for_stats/economic_indicators/prices_indexes/new-car-prices.aspx

chart 1-3 shows the consumer price index for cars. The trends of car CPI is increasing. So why CPI will increase. This is because the economic becomes better and better. People have the higher and higher income. They have the ability to buy the cars. So the cars CPI is increasing.

Conclusion

[pic 5]

chart 2-0

[pic 6]

chart 2-1

Chinese automobiles manufactures face the challenges nowadays. According to the chart 2-0 and 2-1, we can analysis that the primary challenge is the Chinese automobiles producers have low technology. Although the price of foreign automobiles is expensive, but people are willing to buy the foreign automobiles. According to the result, I can suggest that the measures to protect national automobiles manufactures is increase the tax for foreign automobiles and give the subsidy for national cars. The reason why we need to protect the national industry is that a complete industry is important for Chinese military and economics. Automobiles manufactures is an important role in Chinese industry.

Chinese technology, policy, and economic environment will influence the automobiles market. So the government promotes the “trading market access for technology” theory, import the foreign automobiles’ equipment and technology which need to suit Chinese needs. The firms need to have “catch-up consensus”. They need to adopt the advanced technology from the foreign firms and to catch up them. A good economic environment need to be required. According to the theory “consumer price index” and “Producer Price Index”, government can estimate the economic environment and make correct policy.

Reference

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Gan, L. (2008). Globalization of the automobile industry in China:

dynamics and barriers in greening of the road transportation. Energy Policy. 31, 537-551. Doi: 10.1016/S0301-4215(02)00097-6