The Chinese producing cars is like the Japanese producing arms, or the Germans producing home appliances, or the British producing lab equipment, or even like the Russians (They managed to put a man in orbit, but can't make a decent automobile). It just doesn'twork!
The only cars that have had a glimmer of hope are the rebadged Rovers that are coming out of the Nanjing automotive company and the "Roewe"
They should focus on their strengths.