China’s Five Year Plan May Provide an Opportunity for Strengthening the Auto Industry
Industry policies not an economic slowdown will dictate whether China’s auto industry can continue delivering impressive profits
China’s leaders met at the end of October in Beijing to decide on policies for their five-year plan. These plans cover matters ranging from the economy to defense and everything in between. Importantly, the country’s 13th five-year plan begins while Beijing is experiencing its slowest growth in decades, while at the same time China grapples with reforming and rebalancing many facets of its command-based economy.
Whether Beijing policymakers lean more toward nearterm stimulus to reinvigorate the economy versus longerterm reforms remains to be seen. Whichever direction they go—either by continuing to intervene by government fiat, or letting market forces play out—the policy direction has big implications for the world’s automotive sector. Download this market insight to read more.