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The turning point for China’s economy came with Deng Xiaoping's leadership, which initiated sweeping economic reforms. These reforms paved the way for foreign collaborations, leading to the establishment of joint ventures between Chinese companies and Western auto manufacturers. Volkswagen (VW) was the first Western automaker to capitalize on this new opportunity, culminating in the assembly of the first Chinese-made Volkswagen in Shanghai in 1983. This partnership laid the groundwork for what would become a booming automotive market as disposable incomes in China rose and a burgeoning middle class began to emerge.