The metamorphosis of China’s automotive industry (1953–2001): Inward internationalisation, technological transfers and the making of a post-socialist market

Abstract

While the literature on business internationalisation has tended to focus on the outward movement of companies, internationalisation in business history may also be inwardly oriented. This paper studies the metamorphosis of China’s automotive industry from 1953 to 2001 as a long process of inward internationalisation. The main argument is that the internationalisation of this industry started before automotive enterprises were encouraged to take dynamic actions abroad. This process relied on technology transfers to develop indigenous capacity and accumulate learning, while government policies regulated the entry of foreigners and the market conditions. The interactions of national and foreign players are examined during the Maoist period and the first two decades of the reform to determine when and how foreign automotive manufacturers were given access to China. The results confirm that inward internationalisation laid the basis for China’s industrial modernisation and market development.