What are some the foreign companies' motivations associated with entering the Chinese automobile market? Discuss.

    Answer)    There is the various motivation of foreign companies to enter the Chinese automobile market as these companies have a broad range of options in China for corporate formation, including Representative Offices, Joint Ventures, Wholly Foreign Owned Enterprises, and other investment vehicles. However, every option has its own disadvantages, and risks as well as advantages that may vary for different foreign companies. Foreign companies can closely consult with lawyers in China having extensive experience with the market of China and there is no restriction to hire a local or foreign lawyer. The American Jeep, the German Volkswagen AG, and the French Peugeot were first manufacturers of a foreign car to set foot on Chinese soil in 1985. Volkswagen, among them, now dominates the domestic car market of China with roughly half of the total market share after having established a joint ventures’ array.