National Development and Reform Commission: New-Energy Auto Foreign Investment Limits Will Be Cancelled This Year


On April 17th, the official website of the National Development and Reform Commission released the questions and answers of the National Development and Reform Commission (NDRC) on the development of a new negative list of foreign investment and the opening of the manufacturing industry.

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The National Development and Reform Commission stated that the auto industry will implement separate types of transition period opening, cancel the ratio of foreign shares of special vehicles and new energy vehicles in 2018, and cancel the restriction on foreign investment ratio of commercial vehicles in 2020; cancel the restrictions on foreign capital ratio of passenger cars in 2022 and cancel the same time. There are no more than two joint ventures. Through the 5-year transition period, the auto industry will cancel all restrictions.

Q & A:

Second, all sectors are concerned about the opening up of manufacturing industries such as automobiles. What specific considerations and arrangements have been made in formulating new negative foreign investment lists?

General Secretary Xi Jinping announced at the Boao Forum a major move to expand China's manufacturing industry. Open manufacturing industry is the earliest field of China's opening up, and it is also the most full field of market competition. The practice of reform and opening up in the past 40 years has proven that only on the basis of certain development can we fully stimulate market vitality. Only openness can force innovation, and only openness can gather resources at home and abroad.

At present, China's manufacturing industry is basically open, and the direction for further opening up is very clear. It is to achieve full-scale opening up. The new negative list of foreign investment will make manufacturing opening a key point. For example, the auto industry will implement the transitional period for different types of vehicles. In 2018, the ratio of foreign-invested shares of special vehicles and new energy vehicles will be abolished; the ratio of foreign-invested shares of commercial vehicles will be removed by 2020; the foreign-invested-to-equity ratio of passenger vehicles will be removed in 2022, and the joint venture will be cancelled. There are no more than two corporate restrictions. Through the 5-year transition period, the auto industry will cancel all restrictions. Another example is that the shipping industry will cancel the restrictions on foreign-capital shares in 2018, including design, manufacturing and repair. For another example, the aircraft manufacturing industry will cancel the restrictions on foreign-invested shares in 2018, including trunked aircraft, regional aircraft, general aircraft, helicopters, drones, and aerostats.

Manufacturing industry is the main field of global industrial division of labor. Both traditional manufacturing and high-tech manufacturing must maximize the global value chain in an open environment. China's comprehensive opening up of manufacturing industry is a clear indication of our opposition to trade and investment protectionism, and it has clearly supported the wide and in-depth development of economic globalization. We also hope that through the full opening of the manufacturing industry, we will support Chinese and foreign companies in achieving a common development in a level playing field, and encourage Chinese and foreign companies to carry out more extensive and more exchanges of capital, technology, management, and personnel.




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