China May Lift Cap on Foreign Carmaker Stakes in Joint Ventures
- NDRC Chairman Xu confirms government considering rule change
- Backers of lifting cap include chairman of Volvo owner Geely
Xu Shaoshi.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China’s government is considering the removal of caps on stakes foreign carmakers can own in joint ventures with local partners, potentially loosening a policy criticized for shielding state-owned companies from competition and building their own brands.
Xu Shaoshi, chairman of the National Development and Reform Commission, said the government is looking into lifting the 50 percent cap in an interview at a World Economic Forum event in Tianjin. China has mandated that foreign players enter joint ventures with domestic partners to operate in the country since 1994.