Francois, J.Spinanger, D.2014-03-202014-03-202004The World Bank Economic Review, 2004; 18(1):85-1040258-67701564-698Xhttp://hdl.handle.net/2440/82224This article is concerned with the interaction of regulated efficiency and World Trade Organization (WTO) accession and its impact on China's motor vehicle sector. The analysis is conducted using a 23 sector--25 region computable general equilibrium model. Regulatory reform and internal restructuring are found to be critical. Restructuring is represented by a cost reduction following from consolidation and rationalization that moves costs toward global norms. Without restructuring, WTO accession means a surge of final imports, though imports of parts could well fall as production moves offshore. However, with restructuring, the final assembly industry can be made competitive by world standards, with a strengthened position for the industry.en© The International Bank for Reconstruction and DevelopmentJournal article002010226810.1093/wber/lhh03432609