The Beijing government has once again been asked by China’s auto lobby to support the local manufacturers, as the state policymakers have recently announced they are considering easing the foreign investment law.
The foreign ownership rules for the country’s ventures are currently allowing a foreign brand to only have 50% of a company in China, but despite that outside automakers like GM, Ford and Volkswagen still rule the auto market.
“China should open the sector more to domestic investors rather than foreign capital,” Dong Yang, secretary general of the China Association of Automobile Manufacturers (CAAM), said in a statement, while also saying that car firms with a big local investment should be given the “green light”.
“If China relaxes foreign ownership rules, it would be devastating to China’s indigenous brands. Chinese local brands would be killed in the cradle,” CAAM also said earlier in February.
According to Xiao Chunquan, a spokesman of the Ministry of Industry and Information Technology (MIIT), last week China’s central government has made “fresh calls for more opening” and the concerned regulators are “studying the issue and will implement it.”
by Aurel Niculescu
) - Friday, February 21st, 2014 - filed under Industry
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