Date
17 December 2017

Foreign ownership cap in auto sector to stay for now, paper says

China will retain the 50 percent cap on foreign ownership in auto industry ventures for now, Beijing News reported Monday, citing minister of Industry and Information Technology Miao Yu. But the minister urged domestic automakers to boost their ability to compete with global firms, the report said. Increased production volume does not mean China has a strong auto industry, he said. In October last year, a commerce ministry official said the government has been studying the possibility of removing the 50 percent cap on foreign ownership in Chinese auto ventures, the report noted.

– Contact HKEJ at [email protected]

TL/AC/RC

 

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