Date
17 October 2017

CAAM opposes foreign control of car ventures, paper says

The China Association of Automobile Manufacturers (CAAM) renewed its opposition to bids by foreign carmakers to own more than a 50 percent stake in joint ventures in the country, the China Securities Journal reported Friday, citing the group’s secretary-general Dong Yang. China’s auto industry is not an ordinary manufacturing business but a major force in the transformation and upgrade of the economy, Dong said, adding that the domestic carmakers would end up becoming mere processors for foreign brands if they gave up their controlling power over the sector’s development. Analysts say Dong’s remarks were meant to cool down expectations that the government may revise rules to ease market access for some foreign new-energy car manufacturers, including US electric-car maker Tesla Motors Inc., the report said.

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TL/AC/CG

 

 

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