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China to lift restrictions on foreign investment in passenger car production

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

Feature of China | Barcroft Media | Getty Images

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

This is according to release on monday from the Department of Commerce and the National Development and Reform Commission, the country’s main economic planning agency. This document was one of the regular government releases on industries in which foreign investment is prohibited.

The 2021 version released Monday did not include light car production. List edition 2020 promised that the changes will take place in 2022.

China has gradually lifted restrictions on foreign ownership of the domestic auto industry.

However, Monday’s release still includes 31 areas in which foreign investment is prohibited or restricted, including rare earths, film production and distribution, and tobacco products. In industries such as healthcare, foreign organizations must form joint ventures with local partners, who usually have a majority stake.

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