Date
15 August 2018

No end to China’s lid on foreign stakes in car JVs, paper says

China is unlikely in the short term to scrap the ceiling on the maximum half-stake that foreign shareholders can have in mainland car joint ventures, National Business Daily reported Friday, citing Chen Lin, commercial counselor with the Ministry of Commerce’s Department of Outward Investment and Economic Cooperation. An unnamed analyst was quoted as saying the move could protect innovation by domestic carmakers. State-owned automakers are also reluctant to increase their foreign partners’ shareholding because it would eat into their share of the returns from their highly profitable joint ventures, the report said.

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