China to take away overseas funding restrict passenger automotive manufacturing

New cars for export await shipment at a seaport in Yantai, China, on September 7, 2021.

Feature China | Barcroft Media | Getty Images

BEIJING – Chinese authorities will allow full foreign ownership of car production in the country from January 1, 2022.

This is after a release Monday from the Ministry of Commerce and the National Development and Reform Commission, the country’s leading economic planning agency. The document was one of the government’s regular publications on industries prohibited from foreign investment.

The version 2021 published on Monday did not contain any car production. The 2020 edition of the list had promised the change would take place in 2022.

China has gradually lifted foreign ownership restrictions in its domestic auto industry.

However, Monday’s release still covered 31 areas where foreign investment is prohibited or restricted, including rare earths, film production and distribution, and tobacco products. In industries such as medical facilities, foreign companies have to set up joint ventures with local partners, who usually hold a majority stake.

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