BEIJING JEEP AT A CROSSROADS: FACING THE CHALLENGE OF CHINA'S ENTRY INTO THE WTO

Michael N. Young () and Justin Tan
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Michael N. Young: The Chinese University of Hong Kong, China
Justin Tan: Creighton University, Omaha, NE 68178, U.S.A

Asian Case Research Journal (ACRJ), 2001, vol. 05, issue 01, 1-26

Abstract: Beijing Jeep Corporation (BJC) was founded in 1984 as one of the first and largest joint venture between an American company (American Motors Corporation) and a Chinese enterprise. Early in its operation, BJC had been given preferential treatment on tariffs and foreign exchange. Since over forty percent of the content of BJC was produced in China, it had operated as a local manufacturer under heavy protection from imports for all of its short life. All this appeared to be on the brink of changing when trade negotiators for the United States and China announced, after thirteen years of on and off negotiations, the agreement on the terms for China's entry into the World Trade Organization. The terms of the agreement called for a steep reduction in tariffs for imported automobiles from nearly one hundred percent to twenty-five percent by 2006. This would have a direct impact on BJC performance. The case focuses on the strategic challenges facing companies in the changing trade and economic environment.

Date: 2001
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DOI: 10.1142/S0218927501000020

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