Merge and restructure:Lacking motivation

Zhao Ying, a researcher at the Institute of Industrial Economics of the Chinese Academy of Social Sciences

In addition, to promote the auto enterprises joint and restructuring, and to optimize industrial structure should aim to raise the level of industry development. Relative departments should improve industry standards and wash out the undeveloped technology and equipment.

Zhao Ying believed that, the obstacle for Chinese auto enterprises to the reorganization is that China's auto market is the world's fastest-growing auto market but far from saturated. Therefore, there is still large space for development, no driving force to reorganization.
In addition, local governments, to some extent, will make protective interventions, which is another important reason for the slow course of the reorganization.
 
Zhao Ying pointed out that it is necessary to encourage reorganization in auto industry now, but the effect is left to be proved. He said that although the automobile industry was ranked as an overcapacity industry, this resulted from the industry structural. Reorganization could aim at overcapacity enterprises. In other words, if there is a business needs, and appropriate market conditions, the government could turn accelerate the processes, never using the original administrative means.

Zhao Ying, a researcher at the Institute of Industrial Economics of the Chinese Academy of Social Sciences: at least five years later, the Chinese auto industry will be like color TV, refrigerators and other industries, with the upsurge of reorganization. For enterprises which will become the core enterprise reorganization, it is hard to forecast. (To be continued)

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