By Edward Tse, Gao Feng Advisory
China’s National Development and Reform Commission recently announced the elimination of foreign equity restrictions on special-purpose vehicles and new energy vehicles in 2018, on commercial vehicles in 2020 and on passenger vehicles in 2022.
In addition to the opportunity to own their own manufacturing ventures, foreign automakers are no longer restricted to having only two joint ventures in China.
The 50:50 joint venture equity rule dates back to 1994. The government hoped a domestic industry would emerge whereby the Chinese domestic companies would learn from their partners and eventually emerge as successful global automakers in their own right. [Read more…] about Opinion: Accelerating innovation in China’s automobility sector