CCTV News:On January 1 this year, the new negative list of foreign investment access was implemented. In the field of automobile manufacturing, compared with the 2020 version of the document, the new list is clear, and the restrictions on the ratio of foreign shares in passenger car manufacturing and the restriction that the same foreign investor can establish two or less joint ventures to produce similar vehicle products in China will be abolished. What does this mean for foreign auto companies and China’s auto industry?
In 2018, the restrictions on the ratio of foreign shares in special-purpose vehicles and new energy vehicles will be abolished; In 2020, the restrictions on the ratio of foreign shares in commercial vehicles will be abolished; In 2022, the restriction on the ratio of foreign shares in passenger cars will be abolished, and at the same time, the restriction on no more than two joint ventures will be abolished. After a four-year transition period, China’s automobile industry is fully open to foreign investment.
In 1994, the "Automobile Industry Policy" issued by China set the "upper limit of 50% of the shareholding ratio of foreign-funded enterprises", and since January 1 this year, this red line of industrial policy will withdraw from the historical stage.
Experts said that the major policy of liberalizing the ratio of foreign shares in the automobile industry and overlapping relevant automobile industry policies will have a far-reaching impact on the development of the automobile industry in China.