Wednesday, April 18, 2018
China's automobile industry will be further liberalized
ANBOUND
The National Development and Reform Commission announced that China's manufacturing industry will be further liberalized. The automobile industry will implement a transitional period of different types. In 2018, the ratio restriction of foreign-invested shares of special vehicles and new energy vehicles will be abolished; meanwhile the ratio restriction of foreign-invested shares of commercial vehicles will be removed by 2020. However, China will only fully open-up passenger vehicles that own the largest market size in 2022, and it has actually given a protection period of more than four years. Whether this can satisfy the Trump administration that is exerting pressure on China's trade is yet to be known.