Korea’s Foreign Direct Investment in the Automotive Industry in China

Jungmin Lee, Jai S. Mah

Research output: Contribution to journalArticlepeer-review

2 Scopus citations


This article examines the impact of foreign-invested enterprises in the development of China’s automotive industry. It particularly focuses on the case of foreign direct investment (FDI) by a Korean firm, namely, the Hyundai Motor Company, in China. The Chinese government’s policy regarding the automotive industry allowed China’s domestic manufacturers to benefit from technology transfer, as foreign firms were not allowed to invest exclusively in China without a partnership. The contribution of Korea’s investment in China’s automotive industry would comprise the creation of job opportunities, technology transfer and the development of the automobile parts industry. Korea’s investment in the automotive industry of China has policy implications for China and other developing countries trying to expand their technology-intensive industries.

Original languageEnglish
Pages (from-to)175-193
Number of pages19
JournalChina Report
Issue number2
StatePublished - 1 May 2018

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© 2018, © 2018 SAGE Publications.


  • Automobile
  • China
  • Korea
  • foreign direct investment


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