It is likely to be 10 to 20 years before Chinese automakers can compete globally in vehicle production, according to the Washington Post.

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The findings are based on a report, from the University of Michigan, containing interviews with 20 Chinese industry leaders, including manufacturers, government officials and vehicle dealers.


The Washington Post explained how researchers were surprised to learn Chinese industry leaders did not believe China had gained enough technology and expertise from joint partnerships with global companies like General Motors and Volkswagen.


IBM institute for business leader Linda Ban told the newspaper that the Chinese government hoped to get expertise quickly, by requiring Chinese vehicle companies to own more than 50% of any joint venture. But such a technology transfer has not yet happened yet, partly because foreign automakers are concerned about intellectual property rights.

“The domestic Chinese still feel the core technology is in the hands of foreign automakers,” Ban said.

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According to the report, China has a long way to go towards developing the sales process. The country restricted the number of vehicle loans in 2003 after a huge number of defaults and needs credit bureaus and solid repossession laws. China also has cumbersome laws for selling used cars, as well as taxes that can make used cars as expensive as new ones, the report said.


Just-auto has previously reported that China would become the largest market for motor vehicles by 2030.


According to the Washington Post, University of Michigan researcher Bruce Bezlowski said: “There is a lot of uncertainty in the Chinese market, at the same time, there is a real sense of euphoria and excitement when you talk to people about what the future will bring.”