China to Remove Auto Ventures’ Foreign-Ownership Limit by 2022

• April 17 2018

China plans to remove foreign ownership limits for auto ventures within the next four years, giving a boost to global companies seeking better access to the world’s biggest vehicle market.

China plans to remove foreign ownership limits for auto ventures within the next four years, giving a boost to global companies seeking better access to the world’s biggest vehicle market.

Ownership limits in utility and new-energy vehicles will be removed this year, National Development and Reform Commission said in a statement on its website. China will remove the foreign capital limit for commercial vehicles in 2020 and that for passenger vehicles in 2022.

China has required foreign auto makers to enter into ventures with domestic partners to operate in the country since 1994, with the overseas company holding no more than 50 percent.

— With assistance by Ville Heiskanen