20 years of joint-venture in automobile industry has made it be one of our five pillar industries. But the independence R&D capability of our automobile industry has not been improved obviously. From the angle of our automobile industry policies, we conclude that the preference of localization of parts and components, strict regulation of automobile industry, shortcomings of present joint-venture mode, and the characteristics of state-owned corporations in transitional period are the main factors which restrict the promotion of our automobile industry technological capability. So the adjustment of our automobile industry policies, perfect competition, mastery of the independence of R&D and corporation systems that consistent with the market economy are the effective approaches to improve the technological capability of our automobile industry.