China to Encourage Private Investment in State Carmakers
- Private carmakers encouraged to invest in SOEs: policy paper
- China mulls changes to auto industry investment oversight
Bringing private investment into state-owned automakers such as China FAW Group Corp. and Dongfeng Motor Corp. would be in line with the so-called "mixed-ownership reform."
Photographer: Tomohiro Ohsumi/Bloomberg
China is considering encouraging state-owned carmakers to bring in private automakers as investors as it seeks to create an industrial champion to compete with global peers such as Toyota Motor Corp. and Volkswagen AG, according to people with direct knowledge of the matter.
A policy paper outlining the proposal is being studied by government departments, said the people, who asked not to be identified disclosing private discussions. The plans are preliminary and could change depending on feedback from different agencies and industry players, they said. The proposals don’t specify what level of stake is permitted.