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Development of Car Financing in China

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  1. Situation analysis
  2. Problem definition
  3. Analysis and Evaluation of Options
    1. Have the right knowledge and guide the Chinese car market
    2. Taking into account the entire possibilities to enter the market
    3. Improvement of relationships to local authorities
    4. Coalitions and Cooperation
    5. Opportunity of Doing Nothing
  4. Other information that should be obtained
  5. Recommended courses of action

Many people around the world view China as a poor country where every single person has to work around 60 hours per week to survive and feed his family. However, this old fashioned cliché is no longer true. China has woken up and has already managed to shake the world economy. A new step towards internationalization was its decision to join the World Trade Organization (WTO). China became a part of the organization on the 11th of December 2001. The Asian country now has a GDP of 2.68 trillion dollars and competes with nations such as USA and the European countries. Furthermore, the Chinese GDP has experienced a two figures growth rate since a couple of years. This makes it the fastest growing economy of the decade. The economy is getting increasingly liberalized, and the increasing wealth has had an impact on the per capita income. The average income is around $ 1,000 but the urban population enjoys a per capita income of over $ 3,000. It is noticeable that the differences are very high but a category of the population will enjoy high entertainment consumption due to it.

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