Deals
China Carmakers Urge Foreign Ownership Cap to Remain for 5 Years
- Government should use phased approach: China auto association
- Foreign carmakers limited to 50% ownership of Chinese ventures
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China should keep the 50 percent cap on foreign ownership in local passenger-vehicle joint ventures for at least another five to eight years to ensure Chinese carmakers are ready for full-fledged competition, according to the state-backed auto association.
The government can consider lifting the limit on different parts of the automotive industry according to their maturity, starting with the motorcycle industry in one or two years, followed by commercial vehicles in three to four years, Ye Shengji, deputy secretary general of the China Association of Automobile Manufacturers, said in an interview on Saturday in Tianjin. The cap on passenger vehicles should be the last to go, he said.