China has announced that it is set to end foreign ownership limitations on local auto companies by 2022. The move will bring to an end to a policy that was implemented in 1994 to limit foreign automakers to a 50% share in any local joint venture project.
According to Reuters, the Chinese government has also said that if will begin lifting restrictions on new-energy vehicle ventures from this year, starting with the removal of limits for companies making electric and plug-in hybrid vehicles. This will be followed by commercial-vehicle producers in 2020 and the wider passenger vehicle market by 2022.
Industry analysts said that the change in policy is likely to raise pressure on domestic carmakers, while immediate beneficiaries of the switch will be companies focused on new-energy vehicles. These will include automakers like Tesla, which has been seeking to open up a production base in Shanghai.
Many companies are however expected to adopt a wait-and-see approach, and might even baulk at the idea of ditching their joint ventures, being so dependent on Chinese partners that it will be almost impossible to sever ties.
Some automakers have clearly expressed no intention to change the status quo. Last week, a General Motors executive said that even without ownership caps the company will not cut ties with its local partner SAIC Motor, stating that the American carmaker would not be as successful in China on its own.
This was echoed by Honda, which said that it had no plans to change its capital relationship. It said that its business in the country had been developed on the basis of strong local tie-ups.
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Come 2022, Geely-Mercedes-BYD alliance will spearhead electric and plug in vehicles.
No big deal. Actually most of major car makers are bought over by Chinese..
Aside from Geely, no one else really make such huge investment in overseas market.
Even komunis China no limits to foreign ownership. why Proton stop Geely at 49.99%…Sell all u got mang
Must save face lah. Already so malu that China is saving Proton and China is saving Malaysia’s rail development.
Meanwhile here in Bolehland…….
…Geely come in alredi got pipu bash. Never mind, China will conquer the world.
Dont you feel shy? Geely and China are doing ALL the work and you want to tumpang glamour and sama sama share the success?
Oh, you want to contribute to the cause? Can, buy from Proton and in return you will help Geely as well. It’s just that simple. Pfft! Don’t just talk about other people when you yourself is spending all day replying and liking your own comments.
China want tesla gigafactory. Smart move
bolehland still making trip to geely factory but car not in sight. DAMN!!!!!
Because anyone who did that would eventually bite more than they can chew. Don’t mess with China. How many businesses went in big and bow out in shame. Even Google wasn’t spared.
Maybe good for geely to consider making proton cars in China for its market. Remember, the rebadged gen2 and persona sold for almost 200k units in just over several years.
Haha, US won’t waste time on small automotive markets like Malaysia.
actually while obama was president, US wantedto sign TPP trade agreement with malaysia (and other countries), to force open our market for free trade.