China to allow majority foreign-owned auto JVs
The announcement on Tuesday said the maximum stake will be increased by 2025
Beijing has announced plans to relax capital controls placed on auto industry joint ventures to allow majority-foreign ownership, reports Nikkei Asian Review.
Authorities have not given specific details on the schedule or scale of the deregulation, but said that the maximum stake of 50% will be raised by 2025.
Foreign automakers have welcomed the change, which will increase managerial freedom, but local Chinese partners raised concerns about effects on the development of homegrown brands.