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Korea’s Foreign Direct Investment in the Automotive Industry in China

Author

Listed:
  • Jungmin Lee
  • Jai S. Mah

Abstract

This article examines the impact of foreign-invested enterprises in the development of China’s automotive industry. It particularly focuses on the case of foreign direct investment (FDI) by a Korean firm, namely, the Hyundai Motor Company, in China. The Chinese government’s policy regarding the automotive industry allowed China’s domestic manufacturers to benefit from technology transfer, as foreign firms were not allowed to invest exclusively in China without a partnership. The contribution of Korea’s investment in China’s automotive industry would comprise the creation of job opportunities, technology transfer and the development of the automobile parts industry. Korea’s investment in the automotive industry of China has policy implications for China and other developing countries trying to expand their technology-intensive industries.

Suggested Citation

  • Jungmin Lee & Jai S. Mah, 2018. "Korea’s Foreign Direct Investment in the Automotive Industry in China," China Report, , vol. 54(2), pages 175-193, May.
    • Handle: RePEc:sae:chnrpt:v:54:y:2018:i:2:p:175-193
    DOI: 10.1177/0009445518761079
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    References listed on IDEAS

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    1. World Bank, 2016. "World Development Indicators 2016," World Bank Publications - Books, The World Bank Group, number 23969.
    2. Tain-jy Chen & Yi-Ping Chen, 1995. "Foreign Direct Investment," Industry and Innovation, Taylor & Francis Journals, vol. 2(1), pages 57-68.
    3. Haley, Usha C.V. & Haley, George T., 2013. "Subsidies to Chinese Industry: State Capitalism, Business Strategy, and Trade Policy," OUP Catalogue, Oxford University Press, number 9780199773749.
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    Cited by:

    1. Bayari, Celal, 2020. "South Korean Economy and the Free Trade Agreement with China," MPRA Paper 102938, University Library of Munich, Germany, revised 21 Jun 2020.

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