Answer) The main strategic players in the Chinese automobile market
are the Chinese central government and other levels of government. Any
automobile strategy’s development in China must take account of these main strategic
players. Their strategies have a significant influence on the mode of entry
into the market of China. A consolidation process has been happening in the
highly fragmented industry of China, in which there are as much as 120 manufacturers,
for the most unprofitable and part small, with considerable capacity that so surplus.
The Chinese government since 1999, if not before this, has encouraged this consolidation
process. The goal of the Chinese government has been to merge top 13 producers
into three big conglomerates that grouped around the SAIC, Changchun FAW, and Donfeng
Motor Company of Wuhan.