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Currently, more than ever before, much more attention has been paid to the phenomenon that real GDP (gross domestic product) figure in China is significantly increasing, even under the global financial crisis situation. Gross Domestic Product refers to the value of all final goods, and services produced in a country within a given time period. As the GDP ranking listed by United Nation and another one listed by World Bank showed, China was the second place and The United States of America was the first place on the both of above two rankings in 2012, which is the firm evidence for the China national wealth rapid growing. Although China GDP per capita still relatively lower than majority of countries’ GDP per capita due to the greatest number of population basis, the rising GDP has a great deal of economical impacts on numerous industries. (Maley, 2011) For my city, Changchun, the major industry is automobile industry and the car industry in Changchun is changing by the national wealth, consumer confidence, government spending and taxation etc.

To evaluate aspects of the behavior of the automobile industry in my city, Changchun, the research question “What is the impact of the recent rise in China GDP on the automobile industry in Changchun?” was formed.

It was hypothesized that in the automobile industry of Changchun, automakers is increasing supply and demand according to the economic growth and manufacture workers in Volkswagen of FAW have higher income and better employee benefit plan. The proposition was based mainly on the fact that the rising real GDP in China represents the increasing output and the level of citizens’ wealth, which causes consumers to pursue better function of automobile and to pu...

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...s well, which is based on official automobile statistic data that is used for this investigation and data collection. The data of the automobile industry is relatively limited, because it only includes the information about FAW Company in the automobile industry in Changchun. With the information of rest vehicle firms in Changchun, the data is more representative for the essay.

This evidence could lead to the notion that the FAW Volkswagen firm needs the independent development of the engine and avoids the overly relying on the German Volkswagen Company technology. With the increasing China GDP, the Chinese government should give more subsidies for the education and technology development in order to reduce the cost of production from the foreign engines and foreign technique support and to enhance the innovation of national automobile development.

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