1. IntroductionCar manufacturers like GM Holden, Toyota and Ford have decided to close their factories in Australia and move to another country. The automobile industry is among the most important economic phenomena of the 20th century and remains vitally important today. In other words, the global automobile industry has played an important economic role (Wynn-Williams, 2009, p. 2). Today it is one of the largest industries in the world, the industry of industries (Drucker, 1972, p. 176). We see that there is a fairly broad consensus among automotive industry commentators on a large number of issues. The sector has struggled to adapt to recent challenges and is no longer highly valued by financial markets. The slowdown in car sales in more mature markets like North America and Western Europe is also accompanied by much faster sales growth in relatively third world countries like China and India. Therefore, this assignment first reviews the Australian automotive market - operations in Australia and then highlights the challenges and opportunities in China, a potential automotive market, to suggest a way for Holden to enter the Chinese market. The mission aims to study China's competitive advantages and how China could attract many foreign automakers in the short term. The mission also uses a number of journals, books, reports and internet sources to understand in depth the Australian automotive context as well as the Chinese context.2. Operations in Australia2.1. Factors that have changed the competitive landscape of the automobile industry Firstly, the automobile industry is in the decline period of its life cycle (Whattcross, March 2014) with...... middle of paper ..... . must pay depreciation and rent like factory property. Therefore, the automobile industry has been influenced by the decrease in sales volume. Next, the high value of the Australian dollar has certain impacts on competitiveness, such as significantly increasing import penetration, as vehicles imported into Australia will have a lower price compared to locally manufactured vehicles, making exports more expensive on the world market. In other words, much cheaper imports have flooded the Australian market. Indeed, the lack of competitiveness of local manufacturers has led to a drop in sales volume (Whytcross, March 2014). So, according to strategic trade theory, local companies like Gm Holden, Toyota and Ford do not have a competitive advantage. Because the main idea of ​​this theory is that trade policies can raise the level of domestic well-being at a lower cost.