The joint ventures are expected to resist the opening of the chinese automotive market

At the motor Show in Beijing, the international manufacturers and chinese are shine, the latest 4 × 4 urban that they present to the public to conquer the largest automobile market in the world. But behind the scenes, the conversations should be very political, after the announcement of the termination of joint ventures mandatory for foreign manufacturers in China, which, hitherto, could not hold more than 50 % of these joint ventures.

The measure, announced on 10 April by the chinese president, Xi Jinping, at the economic forum in Boao, has been analyzed as a concession to the United States at the time the first two world economic powers seem on the brink of a trade war. The limitations imposed on the foreign manufacturers and technology transfers in the framework of joint ventures, were heavily criticized by the administration of us president Donald Trump. Xi Jinping also announced a significant reduction in taxes on imported vehicles, which would be specified by the end of the year. A gift for luxury brands like Porsche, who do not produce in China, and whose vehicles suffer a tax of 25 % on the import.

Transition to electric

The reform will take effect in two stages, said the national Commission for the reform and development, April 17. The 50% limit will fall as of the end of the year 2018 for the joint ventures specialized in electric vehicles. For vehicles with petrol and diesel, on the other hand, the limit will be lowered in 2022. Still struggling with air pollution important, China encourages the production and purchase of electric vehicles through various measures : subsidies for the chinese brand, and quotas for production of electric vehicles for the entire industry from 2019.

If this reform radically changes the rules, we should not expect major consequences in the short term. The…

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