But without the appropriate strategies, the pain in the Chinese auto industry can be very high.

FORBES: China's Auto Industry Shows Signs Of Impending Gridlock

According to knowledgeable Chinese auto industry sources, Tengzhong was a classic case of a company being its own worst enemy.

FORBES: Growing Pains in Cross Border M&A

The growth of the Chinese auto industry has been under pressure in recent month compared to last year when Beijing boosted demand with tax cuts and subsidies.

FORBES: GM Earnings Next Week Could Drive Stock To $27

The goal of the Chinese government and auto industry leaders is to make China a leader in innovation by 2020.

FORBES: Global Automotive Forum 2011

At the Detroit auto show, a Chinese automaker will debut several new models, and the growing muscle of China's auto industry and rising gas prices are hastening the arrival of Chinese cars on American roads.

NPR: Chinese Company to Sell Cars with Chrysler in U.S.

While the prices they will have to pay may be higher than in 2008 when the U.S. auto industry was in free fall, a more stable industry will enable Chinese companies to overcome their natural fear of venturing abroad.

FORBES: China Shops in the U.S. For Auto Parts Makers

Right now China's auto industry resembles America's at its highly fragmented start: There are 120 or so Chinese companies that have popped up in recent years.

FORBES: Thanks, Now Move Over