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China Dominates the World Auto Industry With an Annual Production of 28 Million Cars

MG is an air warrior and a global traveler who loves to visit and explore new places.

Chinese car brands logos

Chinese car brands logos

Good copy cats

Good copy cats

Background

The China story is something really interesting. As the executive director Southeast Asia of one of the biggest companies I was tasked last month to go to China. I was going to China after two years and was absolutely taken aback at the amount of progress the Chinese had made. What a contrast that in 1947 not even a bicycle was made in China.

The Americans lost all influence in China and they compounded matters by putting all their eggs in the basket of the nationalist who were confined to Formosa. But I think at the back of their mind the Americans were thinking that they did a mistake by backing General Chiang and they would've been better off if they had made up with China.

The Americans ditched the nationalists and 'tricky Dick' the American president made a visit to China and normalized relations. Again the American plan was to accommodate China with investment and money. American business also thought that they had tremendous commerce opportunities in China. The American think tank assumed that the Chinese would be grateful and would become a junior partner with the United States.

The American made billions of dollars of investment in China and also transferred technology. The Chinese were very clever they allowed the American corporations to make a substantial profit and at the same time they did reverse engineering on almost all American products and produced their own.

A symbol of prosperity of a country is the motor car and this is where the Americans lost the battle with the Chinese. China copied popular American and European models and produced them as Chinese with different names at the same time they allowed the Americans,Japanese, and Koreans to manufacture cars in China and make a profit. This was just a lull before the storm because the Chinese economy is working to restore the supremacy of China as a global power which it was in the middle ages when it was known as the 'middle kingdom.'

Hundai manufactures cars in China

Hundai manufactures cars in China

MG Hector top selling SUV in India

MG Hector top selling SUV in India

The Phoenix has risen

China has made a spectacular progress during the last two decades. No economist forecast the rise of China. I am not aware if anybody has written 20 years back about the economic rise of China. The motorcar is the symbol of prosperity in the modern world. Henry Ford launched mass production lines and revolutionised American life. Unknown to the Americans, the Chinese are also working in a similar direction and as the attached video will show the Chinese began to overtake the Americans and the Japanese, who had at one stage dominated the world market for motorcars.

The figures of Chinese car production is mind-boggling and now China produces 28 million cars while the Americans and Japanese perhaps produced tabout 11 million each. Add both these countries figures the Chinese still have about 5 to 6 million more cars.

China sells its goods globally but mostly in the country itself and obviously if the Chinese can sell 28 million cars it means the economy is booming. The pandemic is supposed to have affected the economies of most nations but here is a mystery; the Chinese economy has actually grown during this period.

Many in the world, including Americans are thinking of booking China for the spread of the virus but everybody knows that this is just empty talk. They have formed the quad with India, Australia, and Japan but India is the weak link because Mr. Modi has no intention to entangle with China and fight a war with them on behalf of the Western powers.



New  brand Lvchi

New brand Lvchi

china-dominates-the-world-auto-industry-with-an-annual-production-of-28-million-cars

Take notice

China has served notice to the west, in particular to the United States that it will be the number one power economically and militarily and will be the 'middle kingdom' like it was earlier. Apart from Trump, who realised the danger of China, I don't think American are really aware of what is happening in China. Joe Biden was talking initially of accommodation and called China a competitor. China has made it clear that it is not a competitor but the number one power in the world.

I have read many articles in the Chinese press pointing out that the Americans have been defeated in every war and China is not going to let America off the hook. The Americans have created a Frankenstein and will have to live with it. China has deep pockets and is making inroads in Africa and two countries Pakistan and Lanka have become almost like satellites to China. Chinese have also turned Nepal against India.

The motor car remains a symbol of prosperity and if we go by this, China is heading in a direction where the west is going to be the laggard. Western Europe in particular with a declining and ageing population is in great danger. Their women are not producing enough children and the birth rate is much below the required 2.1. I wonder what they're going to do. The American electorate removed Donald Trump on trivial grounds and they may have to pay a heavy price for it. In the end I must acknowledge the Chinese economic miracle. I drive a Chinese made car and have done 80000 km and its as good as new.

Comments

MG Singh emge (author) from Singapore on July 05, 2021:

Thank you, Kalpana for a wonderful comment. The fact is China is a super power, but there is a sadness that India could have replaced China but the lopsided and idealistic policies of Pandit Nehru destroyed that chance. Now there is a trade surplus of $60 billion with China and Modi must bite the bullet and settle the border issue; obviously, it has to be as per Chinese perception.

Kalpana Iyer from India on July 05, 2021:

China is the new superpower in a lot of things. It will be difficult to cut them out completely. India had initially said that dependency on China will be reduced, but the numbers tell a different story. A lot of trading was carried out with China in the last one year.

MG Singh emge (author) from Singapore on July 04, 2021:

Denise, yes China has come a long way but I m not sure that the benefits are trickling to the masses. This is my observation.

Denise McGill from Fresno CA on July 04, 2021:

Politics aside, China has come a long way and I do hope the people of China are benefiting from the boom and not just a few fatcat elites.

Blessings,

Denise

MG Singh emge (author) from Singapore on July 03, 2021:

Thanks Manatitaji, Vary valid comment. Give the Chinese their due.

MG Singh emge (author) from Singapore on July 03, 2021:

Bill, China has done the impossible and I am impressed and with a mammoth population of 1.4 billion coupled with a strong economy the Chinese will try and 'bury' the west.

manatita44 from london on July 03, 2021:

Well, they most certainly didn't sit on their laurels. Ingenuity and sheer hard work with a vision in mind. Intelligent article.

Bill Holland from Olympia, WA on July 03, 2021:

From a purely economic standpoint, the China story is a fascinating one. I was not aware of the vastness of their car industry. Great information!

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