There are two competing scenarios confronting strategists contemplating a move into China or expand in China: (1) At the current rate of rapid FDI and domestic investment, the Chinese industry will rapidly develop overcapacity. Given the inevitable cooling down of the overall growth of the economy, a bloodbath propelled by self-inflicted wounds such as massive incentives looms on the horizon (see Chapter 2 Opening Case). (2) Given the low penetration of cars among the vast Chinese population whose income is steadily on the rise, such a rising tide will be able to list all boats – or wheels – for a long while at least.