Hyperdrive
Tesla Gets Edge Under China's Relaxed Rules for Foreign Automakers
- General Motors, Toyota, VW, BMW among companies set to benefit
- Foreign carmakers have sought better access to China for years
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China will permit foreign carmakers to take full ownership of their local ventures, offering a trade-talk olive branch and a boost to global manufacturing giants hungry for a bigger slice of the world’s largest auto market.
Scrapping the current 50 percent ownership cap will benefit electric-car producers like Tesla Inc. first, with the restriction on such businesses lifting as soon as this year. The cap for commercial vehicles will be eliminated in 2020 and the one for passenger vehicles will end in 2022, the agency that oversees industries said Tuesday.