The Wall Street Journal: China to ease rules on foreign auto makers after U.S. calls for level playing field

SHANGHAI–China said Tuesday it will phase out rules requiring foreign auto makers to share their factory ownership and profits with Chinese companies by 2022, answering U.S. calls for a level playing field in the world’s biggest auto market.

China now forces foreign auto makers to set up 50-50 joint ventures with Chinese partners if they want to locally produce cars to avoid 25% tariffs. The government said these rules will be eliminated this year for companies building electric vehicles–a move that could benefit Tesla Inc. TSLA, -3.04%  –and for all vehicles by 2022.

“This will completely change the situation in China within 10 years,” said Yale Zhang, managing director of Shanghai-based consultancy Automotive Foresight.

The action could bolster President Donald Trump’s assertions that his policy of pressurizing China to modify its trade behavior is yielding swift results. Even so, people in the industry said the reshaping of China’s auto sector wouldn’t necessarily hand an advantage to foreign players, as the implications of the reforms would take years to become clear.

An expanded version of this report appears at WSJ.com.

Popular now on WSJ.com:

Sean Hannity Was a Client of Trump Lawyer Michael Cohen

Homebuilding Isn’t Keeping Up With Growth, Development Group Says

Filed in: Top News Tags: 

You might like:

Top Ten: Weekend roundup: Marijuana becomes bitcoin | How investing fads work | Short squeeze candidates Top Ten: Weekend roundup: Marijuana becomes bitcoin | How investing fads work | Short squeeze candidates
Capitol Report: Rod Rosenstein discussed 25th Amendment to remove Trump and offered — maybe sarcastically — to wear a wire, reports say Capitol Report: Rod Rosenstein discussed 25th Amendment to remove Trump and offered — maybe sarcastically — to wear a wire, reports say
Personal Finance Daily: Freezing your credit is now free and why you may want to buy a few extra toys this holiday season Personal Finance Daily: Freezing your credit is now free and why you may want to buy a few extra toys this holiday season
Futures Movers: Oil prices log back-to-back weekly rise, with weekend gathering of oil producers on tap Futures Movers: Oil prices log back-to-back weekly rise, with weekend gathering of oil producers on tap
The new ‘Tilray’ marijuana stock is here — this is how to set up the trade The new ‘Tilray’ marijuana stock is here — this is how to set up the trade
Currencies: Dollar headed for worst week in a month; sterling hit after Theresa May’s ‘no deal’ comment Currencies: Dollar headed for worst week in a month; sterling hit after Theresa May’s ‘no deal’ comment
Capitol Report: Rod Rosenstein discussed 25th Amendment to remove Trump and offered to wear a wire, report says Capitol Report: Rod Rosenstein discussed 25th Amendment to remove Trump and offered to wear a wire, report says
It’s not just the breadsticks and pasta pass: Olive Garden is popular for bathrooms, too It’s not just the breadsticks and pasta pass: Olive Garden is popular for bathrooms, too

Leave a Reply

Submit Comment
© 3975 Stock Investors News. All rights reserved. XHTML / CSS Valid.