Abstract
The motorcycle industry in China was born in the 1950's, with the foundation of the Beijing Motorcycle Factory. Today, China is the largest producer in the world, accounting for nearly half of the world's total production.
The first Chinese motorcycle was developed in 1951 to meet the country's military needs during the Korean War.
The country's exports, for the 10-month period between January and October 2005, amounted to $1.4 billion, an impressive 47 percent increase from international shipments in the same period of the previous year. The growth in export volume closely mirrors that value, slightly exceeding 46 percent in the 10 months to October 2005.
The massive entry of private enterprises, which began in the early 1990's, changed the industrial organization dramatically. They mushroomed and formeda motorcycle cluster in several cities. The flood of their low-quality products caused a drastic decline in the market price of motorcycles.
