China repeals restrictions on foreign car ownership Full market opening :: Empathy Media Newsis News Agency ::

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Restrictions on entry into China are lifted through a joint venture… from the 1st of the next month

[탕산(중국)=신화/뉴시스] A car is displayed at an automobile logistics base in Tangshan, Hebei Province, China, on July 16, last year. 2021.12.29.

[서울=뉴시스] Reporter Lee Hye-won = China has decided to completely open up the automobile market by abolishing restrictions on foreign car companies’ equity.

According to China’s state-run Global Times on the 28th, China’s Ministry of Commerce and the National Development and Reform Commission announced the day before that it would remove restrictions on foreign automobile companies’ investment in China.

The number of new joint ventures, which had been limited to two, was also abolished. The measures will come into effect on January 1, 2022.

Since 1994, China has allowed foreign car manufacturers to establish production plants in China through joint ventures with Chinese partners in order to maintain their competitiveness. Ownership has been limited to 50%.

However, starting with eco-friendly vehicles such as electric vehicles in 2018, the automobile market has been gradually opened to foreigners over the past three years. In 2020, the commercial vehicle sector was opened, and the restrictions on passenger cars, which account for 80% of the total market, were also abolished.

With this measure, foreign automakers such as BMW are expected to expand their stake.

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