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Foreign enterprises encouraged to independently produce power battery, motorcycle and vehicular systems in FTZs

BEIJING – The State Council adjusted regulations in China’s pilot FTZs on July 19 and foreign enterprises are encouraged to independently engage in 12 business industries or areas. Regarding the auto industry, power battery, motorcycle and vehicular system building are opened.  

To be specific, foreign enterprises are allowed to produce power batteries with energy density no less than 110 Wh/kg and battery cycle life no less than 2,000 times of use.  

Vehicle-related functions and systems like ABS/TCS/ESP systems, BBW, TCU, TPMS and OBD are allowed to be manufactured.

The decision is aimed at securing lawful practices of measures concerning reform and opening up in the pilot cities of Guangdong and Fujian provinces, and Tianjin and Shanghai, according to the circular released.

Battery giants like Samsung SDI, Panasonic and LG Chem may benefit from the polity. Currently, joint ventures are the main choices for foreign auto accessory suppliers.

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