China to Scrap Last Foreign Ownership Cap on Car Manufacturing JVs

China’s delivery on a promise to ditch the 50% limit on JVs making passenger vehicles will leave global automakers free to set up wholly owned companies from Jan. 1.

China will scrap its foreign ownership cap on joint ventures (JV) producing passenger vehicles from Jan. 1, clearing the last major obstacle for global carmakers who want to set up a wholly owned subsidiary in the world’s largest auto market.

That’s according to the 2021 version of a negative list jointly issued on Monday by the National Development and Reform Commission (NDRC), the country’s top economic planner, and the Ministry of Commerce, which itemizes domestic businesses that are off-limits to foreign investors.

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