The Chinese Export Development Process and Its Implications on the Korean Auto Industry

This paper analyzes the export development of the Chinese auto industry using the theoretical framework of the Uppsala model. It finds that this export development has progressed incrementally, from auto parts to vehicles, from destinations of developing countries such as the Asian markets to developed countries such as the USA and EU, and from foreign manufacture to local Chinese manufacture. Though statistical hypothesis testing could not be carried out, most hypotheses are supported by Chinese export activities and foreign expansion plans, which have contained clues about the future decisions of the Chinese auto companies. It is timely and pertinent to analyze the Chinese progressive export paths and their negative effect on the exports of the Korean auto industry, because we are in the early stages of anxiety over the Chinese making inroads into the Korean auto export markets. Korean companies must reform their export structure and quickly reinforce the export of high-tech items by elevating their technical competitiveness. The Korean SMEs(Small Medium Enterprises) must strengthen their own export capabilities and improve their high-tech quality to become global companies. These activities should be fully assisted by the Korean government.