DiscussionPapersareaseriesofmanuscriptsintheirdraftform.Theyarenotintendedforcirculationordistributionexceptasindicatedbytheauthor.ForthatreasonDiscussionPapersmaynotbereproducedordistributedwithoutthewrittenconsentoftheauthor.CIRJE-F-81TheAdvancetoCarProductionandGlobalizationoftheChineseMunitionsEnterprisesJinChenUniversityofTokyoTakahiroFujimotoUniversityofTokyoChunliLeeAichiUniversityJuly2000TheAdvancetoCarProductionandGlobalizationoftheChineseMunitionsEnterprisesWorkingPaperforMITIMVPDRAFT:June30,2000JinChen(AffiliatedResearcher,InstituteofSocialScience,UniversityofTokyo)TakahiroFujimoto(Professor,DepartmentofEconomics,UniversityofTokyo)ChunliLee(AssociateProfessor,DepartmentofEconomics,AichiUniversity)AbstractThispaperundertakesapracticalanalysisontheChinesemunitionsenterprises’advancetothecarproduction,theirformationofthedevelopmentstrategiesandtheglobalizationprocesswithforeign-venturedenterprisesinordertoformulatetheirmassproductionsystem.Alongwiththeendofthecoldwar,theChinesemunitionsenterprisesbegantotransfertotheproductionofciviliangoods.Automobileindustrybecametheprimaryparticipationcircletoeachmunitionsenterprise.ThemostsuccessfulcasesareChang’anAutomobile(Group)LiabilityCo.,Ltd.(Chang’anAuto)towhichArmamentIndustryCorporation(ArmamentCo.)affiliates,ChangheAircraftIndustryCo.andHarbinAviation&AutomobileManufactureCorporationLtd.towhichAviationIndustryGeneralCorporationaffiliate.Theirautoproductionwererankedthetopforth,seventhandninthin1999.Thebackgroundconditionsandorganizationstructureofmunitionsenterprisesarequitedifferentwithcivilianenterprisesintheiradvancetocarproduction.Differentwithcivilianenterprises,thecarproductionofsuccessfulmunitionsenterprisesalmoststartedfromzeroandrapidlyincreasedwithinshortduration.TheirdevelopmentarecloserelatedwiththedevelopmentstrategytoChinaoftheglobalenterprisesintheChineseautomobilemarket.Thispaperwillanalyzeonthedevelopmenthistoryofthemunitionsenterprisesandtheirglobalizationdevelopmentbasedontheactualconditions.Fromthehistoricalview,thedevelopmentoftheChinesemunitionsenterpriseswereaffectedbytherelationshipchangeswithJapan,theformerSovietandAmerica,especiallybytheChina-JapanWar.ThereforetheproductionbasesoftheChinesemunitionsindustryintheinnerareasweresetupduringChina-JapanWarandweremoreenforcedduringthecoldwarbetweenAmericaandSoviet.Thefactoriesgroupswhichwereestablishedintheseproductionbasesandproducedmilitarygoodsormachinerygoodsbecametheprimaryenterpriseswhichshiftedtotheautomobileproduction.Thesuccessfulmunitionsenterprisespossessratherbettermanagementresourcesandlocationconditions.Especially,manyyears’technologicalknow-howofitsmachineryproduction,trialproductionofjeep,experienceofsmallquantityproductionandtheindustrialfoundationofChongqingasthelocationofChang’anAutoareimportantconditionswhichledtoitssuccesslater.Thestrategiesof“givingupbigroad,undertakingtwo-sideroads”especially“MainlyTargetingMinis”formulatedbyArmamentCorporationandAviationCorporationintheirinitialdevelopmentperiodofvehicleproductionplayedanimportantroleinrapidincreasingofMinivehiclemakerssuchasChang’anAutoandtheadvancetocompactcarproduction.Afterthetechnologicalintroductionofcompactcarproduction,ArmamentCorporationadoptedserialstrategies,suchastheenforcementofitscoordinationwithforeignmakersspeedily,structurereorganizationandlisted...
