China lifts restrictions on foreign investment in passenger car production
Newly exported cars wait for shipment at a seaport in Yantai, China on September 7, 2021.
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BEIJING – Chinese authorities will allow full foreign ownership of passenger car production in the country starting January 1, 2022.
That’s according to a release on Monday from the Ministry of Commerce and the National Development and Reform Commission, the country’s top economic planning agency. This document is one of the regular government announcements on industries where foreign investment is prohibited.
The 2021 version announced on Monday does not include passenger car production. 2020 version of the list promised that change would come in 2022.
China has gradually removed foreign ownership limits in the domestic auto industry.
However, Monday’s announcement still covers 31 sectors where foreign investment is prohibited or restricted, including rare earths, film production and distribution, and tobacco products. In industries such as medical institutions, foreign entities must enter into joint ventures with local partners, which often have large stakes.