The country will fully relax or cancel the foreign capital ratio than the Chinese car companies must limit the way to deal with

China must fully relax or cancel restrictions on foreign capital ratios. Ning Ji, the deputy director of the National Development and Reform Commission, said at the press conference of the National Development and Reform Commission on the 6th of this month.

The National Development and Reform Commission, as a direct setter and manager of the foreign investment industry policy, said this time at a special press conference held during the two sessions of the two countries, indicating that the wolf really is coming.

There have been discussions on the topic of foreign-capital shares for many years, but Chinese auto companies, especially those that rely mainly on joint ventures, do not seem to have paid substantive attention to them in recent years.

At the meeting of representatives of the two auto industry conferences in March 2014, Miao Wei, Minister of Industry and Information Technology of the automotive industry authority stated clearly that “the ratio of open shares to foreign capital is a problem” and “We will determine a timetable for the Putting it back later, but the time it takes to leave its own brand is limited, we must cherish it."

Now four years later, the National Development and Reform Commission has any leader at this time, deputy director Zhang Yong, deputy director Ning Ji, blowing priests, male princes, and Europe. Is it a nightmare?

In fact, in recent years, the alarm bells of relevant leaders of related departments have been knocking.

At the Davos Forum at the beginning of 2016, Xu Shaoshi, the then director of the National Development and Reform Commission, revealed that the government is considering removing 50% of the foreign auto company’s holding limit.

In April 2016, Ministry of Industry and Information Technology Minister Miao Wei stated that the stocks ratio has entered a countdown period, with a length of 8 years and a short period of 3 to 5 years. This is the first time that China disclosed the schedule of shares for auto joint venture companies.

In April 2017, the three ministries and commissions of the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Science and Technology Commission proposed in the "Mid-term and Long-term Development Plan for the Automotive Industry" issued jointly by the Ministry of Industry and Information Technology to improve the domestic and foreign investment management system and orderly release the equity ratio limit of the joint venture.

In May 2017, Sun Jiwen, a spokesperson for the Ministry of Commerce, said that the revised “Guidance Catalogue for Foreign Investment Industries” is intended to open up restrictions on foreign-capital shares in areas such as batteries and motorcycles for automotive electronics and new energy vehicles.

However, it may be that many leaders of Chinese auto makers will be excited by the final revised "Guidance Catalogue for Foreign Investment Industries" because the ultimate energy-powered battery for new energy vehicles is still on the negative list, and the production of autos and special-purpose vehicles still requires the Chinese side. The stock ratio is not less than 50%.

The opening for the auto industry is that the same foreign company can establish two or less joint ventures in the country to produce the same vehicle products (passenger cars, commercial vehicles) within the country, such as joint ventures with Chinese partners to merge with other domestic cars. The production enterprises and the establishment of joint ventures for the production of complete electric vehicle products for pure electric vehicles are not subject to any restrictions.

Although it is undoubtedly a good thing for many car companies today to pass the national policy to keep the equity ratio limit, we must note that by 2017, the “Foreign Investment Industry Guidance Catalog” has been revised for the seventh time, and Three years have been revised twice. The rhythm of revision is unexpected.

Now, Ning Ji, the hammer, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, the gong, and the Killing is not enough for you, but you can't help but you can't wait until you reach the goal.

Obviously, under the current global political and economic environment, the National Development and Reform Commission’s statement is of great significance because “foreign capital has become an important part of China’s economy.” For this reason, “it is necessary to continue to make great efforts and continue to take hard measures”.

It can be imagined that the tide of restrictions on the liberalization of the Chinese auto industry may really be coming this time. Chinese car companies with joint venture partners must study it as a major theme of business operations and explore a new history. The road to cooperation and mutual benefit during the period is not a matter of waiting.