After joining WTO, the Chinese market opens market more and more,China already on jumping to become world the third sale big country and world the fourth manufacturing big country, Chinese huge development space of the Automotive market makes the foreign capital enter continuously. After WTO, foreign capital enter every field of Chinese Automotive industry, they gradually finish their stratagem in china. The foreign capital gets into in succession, promoting the high-speed development of the Chinese Automotive industry, but also brought negative influence on automotive exterior environment and the industry safe. The Automotive industry in China faces a difficult situation .This text gets the analytical of foreign capital into the china automotive industry, gains or losses that the car industry brings, using some example and figures. The first part analyze the situation that foreign capital into Chinese Automotive industry. The second part is the good effect in Chinese Automotive industry, the third part is explains bad effect in Chinese Automotive industry. Finally is give some advise which is suit for Chinese Automotive industry in the future.
【Key Words】foreign capital Automotive industry Benefits cost