Beijing Jeep Corporation Ltd. was one of the first joint venture between the American company DaimlerChrysler Corp, and Chinese companies, Beijing Automotive Works. In its early days, Beijing Jeep gave concessions on tariffs and foreign currency, and has spent many years developing relationships with senior government officials, who protected it from competition from imports. After several years of negotiations, it was agreed terms for China to join the World Trade Organization. This agreement called for a steep reduction in tariffs on imported cars, which will reduce the barriers to the Chinese automotive industry, creating more competition for the company. Tariffs on components imported from the U.S. will also be reduced, but not enough to offset the flow of imported cars in the market. Joining the WTO will mean a lot of changes, and Beijing Jeep to determine whether to continue to focus on the relationships she built with the government, or approach their joint venture partner for additional support. "Hide
by Michael N. Young, Justin Tan Source: Richard Ivey School of Business Foundation 24 pages. Publication Date: October 17, 2001. Prod. #: 901M61-PDF-ENG
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