Cars for a market of 1 billion -- However, each of the big automakers now has a production initiative in China. The most aggressive is probably GM, which has made a $1.52 billion investment in Shanghai to create one of the most advanced factories in its entire world production system. Other notable examples include:

Tier One not far behind -- The automakers are, in turn, being supported by tier one suppliers, who are making investments in China to supply components and modules. Dana, for instance, has spent a decade building up its presence in China, with a division of its Spicer Driveshaft Co. in the North China city of Shenyang, as well as other small facilities. Thus, the prediction is that China will sharply increase production of diecast aluminum parts in the coming years to support auto production. This will require substantial investment by additional tier one -- as well as tier two and tier three -- suppliers.

Still learning -- As one American who is familiar with the China market told me, "The diecasters in China certainly aren't capable of producing complex die cast components, at least not in the facilities I've visited. This seems to be confirmed by the fact that U.S. automakers I met with there encouraged me to come and open a plant in China, promising a 'flood' of orders." However, he adds, this is a market rapidly transforming, and opportunities are a moving target. "The Chinese will learn fast -- quicker than anyone expects. They are already taking orders away from U.S. diecasters, albeit in lower-precision type components, at least for now. And all of the equipment suppliers have set up shop there, so the Chinese diecasters who are willing to make the investment will be producing off the same base as everyone else in the world."