China Blinks In Tariff Standoff With US, Scraps Ownership Limits On Foreign Automakers

China will end foreign ownership caps on local auto companies by 2022 and will remove restrictions on new-energy vehicle ventures this year, a major shift that will open the market wider to carmakers such as Nissan and Tesla.

The country will remove limits on companies making fully electric and plug-in hybrid vehicles in 2018, commercial-vehicle firms in 2020 and the wider passenger vehicle market by 2022, China's state planner said in a statement.

The move, which comes amid a trade standoff between Washington and Beijing, signals the end of a rule put in place in 1994 in the world's largest auto market limiting foreign carmakers to owning a 50 percent share of any local venture.

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valhallakey - 4/17/2018 1:11:01 PM

+5 Boost

Interesting to watch this develop. Glad the administration is making progress on this front. This will be good not only for US cars but also the other manufacturers globally. On the other hand I saw that China put a 187% tariff on sourguhm (spelling?). Glad I don’t have investments in that.

MDarringer - 4/17/2018 10:07:39 PM

+1 Boost

The art of the deal. Getting cozy with the Chinese is more advantageous than NAFTA. Canada and Mexico out to be crapping themselves.

TomM - 4/22/2018 5:01:16 PM

+1 Boost

And Donald Trump said he would release his tax returns TOO. And so far - nothing has actually happened. While China said something - they have NOT implemented it. I understand they have said they will do so the day after Trump releases his taxes (TIC)