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New regulations on auto investment to tighten industry supervision, replace 14-year-old AIDP

BEIJING – The National Development and Reform Commission (NDRC) has issued a draft of regulations that aims to tighten supervision and raise investment thresholds in the auto industry. The Administrative Regulations on Automotive Industry Investment (ARAII) (draft to solicit public opinion), a copy of which CBU/CAR has obtained, is expected to

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Electrification race heats up as new industry policy arrives

Bye bye Automotive Industry Development Policy (AIDP). Hello Administrative Regulations on Automotive Industry Investment (ARAII)! The AIDP that has been the overarching document governing development principles of China’s auto industry over the last 14 years will soon be replaced by ARAII (see New regulations on auto investment to tighten industry supervision, replace

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Ready or not, the “WOFE” is coming for car manufacturing in China

Get ready for a new era where foreign carmakers can build wholly-owned manufacturing plants in China without having to form a joint venture with a Chinese manufacturing partner, as required by the existing Automotive Industry Development Policy (AIDP). There is a catch, of course. With Ministry of Commerce (MOFCOM) Spokesman

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Pressure mounting for carmakers as market cools and tougher policies arrive

China’s auto sales in May were flat over the same previous month and through the first five months, sales were only up 3.71 percent, according to data released by China Association of Automobile Manufacturers (CAAM) on June 12. Worth noting is passenger vehicle sales were down 2.64 percent in May

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50:50 JV equity rule may be history by 2020

The Auto Industry Mid- to Long-Term Development Plan released on April 25 is the clearest indication yet that the relaxation of the 50:50 equity requirement for vehicle joint ventures in China is now just a matter of time. And that time may come sooner rather than later, judging from

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50:50 JV equity rule relaxation highlights new industry development roadmap

BEIJING – The Ministry of Industry and Information Technology (MIIT), the National Development and Reform Commission (NDRC) and the Ministry of Science and Technology (MOST) jointly released China’s Auto Industry Mid- to Long-Term Development Plan on April 25. The industry had been looking forward to this document for some time

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JAC-Volkswagen: a milestone, a match “tailor made” and a potential policy buster

The blockbuster news of the week is the signing of an MOU on September 6 between Volkswagen AG and Jianghuai Automobile Co., Ltd. (JAC) to jointly develop battery-powered electric vehicles in China and potentially establish a joint venture. The MOU comes less than a year after Premier Li Keqiang visited

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Happy Chinese New Year of the Monkey!

Happy Chinese Lunar New Year of the Monkey! The monkey is associated with cleverness, wisdom and ambitiousness. Individuals born during the Year of the Monkey are able to easily adapt to new situations because of these traits. That should bode well for China’s auto market. In fact, January (though technically

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China closer to relaxing equity threshold on vehicle JVs

The State Council’s decision to allow foreign firms to establish wholly-owned motorcycle and related components manufacturing facilities inside the Shanghai Free Trade Zone (Shanghai FTZ) is a sign that China is closer to relaxing the 50:50 equity share threshold on vehicle assembly joint ventures. On September 28, China’s cabinet said

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