Joint venture equity ratio did not release a new car joint venture will be difficult approved

Posted on 11/6/2014 3:34:57 PM

November 4, the National Development and Reform Commission issued the "Guiding Catalogue for Foreign Investment Industries" (hereinafter referred to as the "Contents") revised, and to the public for comments. In this "catalog" revised version, the vehicle manufacturing is classified into the category of restrictions on foreign investment in them, which means the establishment of a new car joint venture in the future will be limited.
In this "catalog" revised draft, automobile, private automobile and motorcycle manufacturing are included in the restrictions on foreign investment in the industry catalog them, but also provides the Chinese equity ratio of not less than 50%, with a foreign available domestic establish two (including two) following the production of similar (class passenger, commercial vehicles category, motorcycle category) joint venture vehicle products, such as joint venture partners with Chinese joint merger other domestic auto manufacturers can not be two of the restrictions.
Reporters found that in 2007 the revised "directory", the automobile manufacturing are classified encouraged them entry, and head rotor 149701-0520 indicate the proportion of not more than 50% of foreign investment, while in 2011 the revised catalog, from the vehicle manufacturing encouraged deleted. Today, this draft will be included in the vehicle manufacturing restrictions on foreign investment in the directory. In this regard, the automotive industry consultant, said Zhang Zhiyong, "directory" is a reference to the NDRC approval of the project when such a change, said in 2007, the state is to encourage foreign joint venture auto companies, while in 2011 it is neutral, is now classified restrictions on foreign investment category means that the joint venture has almost closed the car door, the future of the new joint venture will be difficult approved.
Also worth noting is that since last year, discussions on the automobile joint venture equity ratio has never stopped opening, position the relevant departments have been interpreted as breaking the 50% equity ratio red signal, but this "catalog" revised still provides a "vehicle manufacturing joint venture in China shares is not less than 50%," which is not interpreted as the percentage of shares open signal is outside. In this regard Zhang Zhiyong said, "Catalogue for the Guidance of Foreign Investment Industries' Development and Reform Commission published the catalog is just a guideline, it is established in accordance with the existing industrial policy, is open for the future joint venture equity ratio does not make any sense, express or implied.

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