Changes after the Year 2000:Directions for Future Development

Directions for Future DevelopmentSince 2000, competition in the motorcycle industry in China has changed significantly.As we have already seen, this is indicated by the fact that the profit rate of the industry as a whole has gradually improved since 2002 and that the market share of top firms has risen concurrently.The corresponding decrease of blatantly faulty products, including those violating intellectual property rights, also implies that such a change has taken place.This chapter explores the transformations of firms that have led these changes during the period.Based on the findings of the second survey conducted during the years 2001-3 and the supplementary survey in 2004, it will clarify the characteristics and changes since the late 1990s of the internal organization of makers and suppliers that undertake product development, and the results of capability accumulation therein.It will then verify how the supplier system has changed in response to, and in support of, such changes within the firms. I. Changes in the R&D System of Chinese MakersThis section, which overviews the characteristics of the R&D system of Jialing, Qingqi and Zongshen, compared with that of their Japanese counterparts, will clarify changes since the late 1990s and the direction of future development.