Cars are exhibited at Shanghai International Auto Show. (File photo/China News Service)
(ECNS) — China will scrap a limit on foreign ownership of automotive ventures by 2022 amid similar deregulatory moves in shipbuilding and aircraft industries, said Chen Yin, chief engineer of the Ministry of Industry and Information Technology, on Wednesday.
China currently restricts foreign auto firms to a maximum 50 percent ownership of joint ventures with local companies. It will cancel foreign shareholding limits for special vehicles and new energy vehicle firms by 2018 and that of commercial vehicles by 2020.
Chen said China will abolish restrictions limiting foreign automakers to two joint-venture partners, emphasizing opening up the auto market will be a win-win policy.
The ministry has cooperated closely with taxation authorities to study the tariff cut for imported vehicles and that the policy will be released as it's ready, according to Chen.
It was added that China will keep opening up the market and integrate with the global supply system.