WUHU, China -- In this city on the Yangtze River, more than 25,000 blue-uniformed workers are busy churning out cars for Chery Automobile Co. As they motor through double shifts using the latest imported technology, they're also helping to change the dynamics of the global auto industry.

Barely a decade after it was founded, state-owned Chery has emerged as China's largest independent vehicle maker -- and one that is determined to compete against the world's automobile giants.

"In...