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China will allow foreign ownership of passenger car manufacturing

China will allow foreign ownership of passenger car manufacturing
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Beginning January 1, 2022, Chinese authorities will allow complete foreign ownership of passenger car manufacturing in the country.

The Ministry of Commerce and the National Development and Reform Commission, the country’s primary economic planning agency, issued a joint statement on Monday. The report was one of the government’s quarterly updates on industries that are off-limits to foreign investment.

The version for 2021 that was released on Monday did not include passenger car production. The modification was promised in the 2020 edition of the list, and it would happen in 2022.

Foreign ownership restrictions in China’s domestic auto industry have been gradually eased.

Rare earths, film production and distribution, and tobacco products are among the 31 industries where foreign investment is prohibited or restricted, according to Monday’s announcement. Foreign firms must form joint ventures with local partners in industries such as medical institutions, where local partners normally hold the majority stake.

Topics #China #foreign ownership #passenger car manufacturing

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