【答案解析】{{B}}Influence of China's WTO Accession on Domestic Automotive Industry{{/B}} China's automotive industry can be roughly divided into two factions: purely Chinese companies and Chinese companies working under multinational automotive groups. The Chinese automotive industry is strong in several aspects. First, China will become the world's largest consumer of automobiles in the 21st century. Second, China has established a complete automotive industrial system, with some car products reaching international technological levels equivalent to those of the 1990s. Third, some imported models have been highly localized. Finally, cheap labor is a weapon that China can use to fight against foreign competitors. China's WTO entry will have a good deal of positive influence on domestic automotive industry. First, WTO accession may advance the growth of the auto market. Second, entering the WTO may lower the prices of products used in the automotive industry. Third, trade liberalization will spur the development of international trade and stimulate automobile exports. Finally, the WTO entrance will accelerate the development of the private auto market, as individuals will be the major force behind auto purchases. China's WTO will also have some negative impact. First, giant automotive companies from Japan, the US, Germany, France, Italy and other countries will be able to fully flex their muscles and take advantage of their superiority in technology, marketing and working capital. Second, excessively rapid liberalization of the market after WTO entry will lead to plummeting revenues and profits for China's auto makers, which may force car makers into laying off some of their employees. At the end of 1992, China's automotive industry employed roughly 1.85 million people. Third, the shrinking revenues and profits will also significantly decrease the taxes that the Chinese government can levy on the industry. In 1992, the auto industry's total production value accounted for 12% of the total domestic industrial production value of the year. In 1997, the auto industry paid RMB20 billion in taxes, accounting for a crucial portion of the GDP. The decrease in imports will lead to a significant drop in customs taxes and other taxes on automobile-related products imported. Finally, once multinational companies establish sales networks in China, they will be able to launch many products and services onto the domestic market.