The National Development and Reform Commission (NDRC) moved swiftly in announcing a timeline for the phase out of restrictions on foreign ownership of vehicle manufacturing ventures on April 17, a week after Chinese President Xi Jinping said on April 10 at the Bo'ao Forum for Asia 2018 Annual Conference that China would reduce limits on foreign investment in the auto industry.
The five-year phase out plan comes in three stages. First, China would relax foreign equity restrictions on special-purpose vehicles and new energy vehicles in 2018. Second, those restrictions will be gone for commercial vehicles in 2020. And finally for passenger vehicles in 2022, by which time foreign automakers are no longer restricted to having only two joint ventures in China.