China’s Factories Aim to Fill the World’s Garages

As China’s economy grows, its domestic automobile industry has come to exceed that of more developed neighbors, like South Korea. Increased car travel has caused auto fatalities and air pollution to skyrocket, but may also be eroding the Communist Party’s political and social controls, says this New York Times article. And as multinational auto manufacturers increase investment in China, the industry’s rapid growth has fueled speculation that China may soon export cars to the world market. This prospect worries businesses and workers in many countries. Countries like Mexico and South Korea, which manufacture auto parts, fear that China will cut into their markets. And union leaders in industrialized countries worry that auto manufacturers will shift operations to China to take advantage of low wages. For the moment, however, quality problems and inefficient parts factories are keeping China’s auto industry from moving beyond its borders. – YaleGlobal