Putting the Pedal to the Metal
Subsidies to China’s Auto-Parts Industry from 2001 to 2011
on January 31, 2012
China is currently the largest car market in the world. It is also one of the largest auto-parts producers and exporters in the world, with exports, primarily to the United States, constituting about a third of its production. The Chinese government has provided subsidies for auto-parts manufacturing in China, and strategic decisions by Chinese policymakers and foreign companies have ramifications for the U.S. and global economies. This report summarizes the state of China’s auto industry and the important role that government subsidies have played in its expansion.