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In just over a decade, China's backward auto industry has been transformed into one that has modern large-scale assembly capacity, comprehensive local supply networks, current car models, and most recently, a new generation of homegrown brands and models. The Chinese state has taken a leadership role in pushing foreign automakers to transfer investment capital and advanced technologies to China. In the context of the world's fastest-growing automotive market and industry, the book examines two themes in political economy -- the state in industrial development and multinational corporations in developing countries. Chin looks in detail at three focal points of China's automotive modernization: the initial industrial redevelopment drive around Beijing Jeep, Guangzhou Peugeot and Shanghai Volkswagen from the mid 1980s to the early 1990s; the pursuit of more complete local sourcing and production systems for Shanghai General Motors in the 1990s; and the rise of a new generation of homegrown passenger cars since the late 1990s. The analysis is based on original research, including interviews with Chinese government officials, Party cadres, Chinese and foreign industry representatives, and industry researchers and experts.