China Plans to Open Car Market By 2022

China Plans to Open Car Market By 2022

0 comments 📅20 April 2018, 03:45

After weeks of unpleasant business talk and posturing between Washington and Beijing, China’s lead economic planner announced the motherland would be easing limits on foreign ownership of automotive ventures. While an documented metric was not posted, it will be less than the current 50-percent cap non-Chinese automakers possess been limited to since 1994. But, for all we know, China may be seeking to scrap the mandate wholly.

We did, however, get a timeline. On Tuesday, the People’s Republic announced it would remove non-native ownership caps for companies making fully electric and plug-in hybrid vehicles this year — followed by commercial channel manufacturers in 2020 and the rest of the car market by 2022.

Nobody seems to be able to figure out why China certain to extend an olive branch. Presumably, it’s to alleviate the growing trade tension with the Shared States. But European automakers have just as much to gain, if not more, from the shift. BMW sends more vehicles from the U.S. to China than anyone and Volkswagen sells the most cars preferential the country through its joint-venture partnerships with FAW Group.

Ford and Global Motors still move their fair share of metal, though — and a lot of it is built in China. Peradventure the nation’s government simply felt enough foreign automakers had made enough investments within the country already, and didn’t want to risk a full-blown dealings war with the U.S. just to get a few more jointly owned factories. It’s not like anybody is flourishing to abandoning the market anyway; the country is far too big for businesses to ignore.

We’re hoping China has more to say on the enigma soon.

a version of this article first appeared on thetruthaboutcars.com

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