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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The death of the 50:50 JV equity rule and the traditional fuel vehicle?

The Ministry of Commerce (MOFCOM) sort of responded to a recent Bloomberg report that China is considering letting foreign carmakers set up wholly-owned ventures to produce electric vehicles inside China’s free-trade zones when its spokesman said at a regular conference on September 21 that China is working on measures to

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Foreign carmakers no longer bound by two-JV cap if third JV produces BEVs

BEIJING – Foreign carmakers are no longer limited to having a maximum of two vehicle joint ventures if the third is set up to only produce battery electric vehicles or if they acquire other carmakers in China together with their existing Chinese JV partners, according to the Catalogue for the

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U.S. to impose punitive duties on Chinese tires

WASHINGTON, D.C. – On July 14, 2015, the United States International Trade Commission (USITC) arrived at the conclusion in a final ruling that a U.S. industry is materially injured by reason of imports of certain passenger vehicle and light truck tires from China, which were deemed to be subsidized and

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China encourages automakers to go abroad

Chinese automakers should make practical strategies and set clear and realistic targets for going global utilizing favorable conditions the government has created for outbound investment, said Chen Lin, Commercial Counsellor of the Department of Outward Investment and Economic Cooperation for the Ministry of Commerce (MOFCOM). According to Chen, China’s central

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China may see changes in vehicle distribution system

China’s General Administration of Industry and Commerce (GAIC) announced on August 1 that as of October 1, 2014, it will no longer accept filings of business licenses for general automobile dealerships and franchised automobile dealerships. The business scope of future dealerships will be “automobile sales” instead of “XXX brand automobile

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