China's rise presents a great challenge to the global economic system. As globalisation progresses, European operators are beginning to compete head on with Chinese industry, and the question of Europe's competitiveness in an open world economy is becoming an increasingly important one. Formulating a response to China is in many senses similar to formulating a response to globalisation itself.

China's automotive industry is suffering from over-capacity and low (or) no profitability throughout the valued chain. On the other hand, environmental and energy pressures are making a greater impact on the industry than ever. The Fourth Annual China Automotive Industry Forum looked at both the regulatory issues facing the industry as well as the competitive environment of the sector.

If your company does have a choice concerning partnering, the first rule in deciding which route to take is: don't rush. So says General Electric China's Steve Schneider. He advises foreign companies entering China first to spend time understanding the business environment.