The National Development and Reform Commission has announced that China will cancel or dial back existing restrictions on foreign ownership of companies in the automobile, shipbuilding and aircraft manufacturing sectors.
NDRC announced in an official statement that major adjustments would be made to the “negative list” for foreign investment in order to loose restrictions on overseas ownership, just after President Xi Jinping flagged a strong commitment to further opening and reform of the Chinese economy.
“The new foreign investment negative list will make opening of the manufacturing sector a priority,” said NDRC.
“For example, the automobile sector will see the implementation of transitional opening by category, with the cancellation of foreign ownership restrictions for special purpose vehicle and clean energy vehicle (companies) in 2018.
“In 2020 we will cancel foreign ownership restrictions on commercial-use vehicles, and in 2022 we will cancel foreign ownership restrictions on passenger vehicles.
“At the same time we will rescind the requirement that no more than two parties participate in joint ventures…following a five year transitional period, the automobile sector will see the complete cancellation of all restrictions.
Aside from the automobile sector, other sectors where foreign-ownership restrictions will be lifted include shipbuilding and aircraft manufacturing.
“”In addition to encompassing opening measures already announced for sectors such as finance and automobiles, the new negative list will also introduce a series of opening measures for high-priority areas such as energy, resources, infrastructure, transportation and professional services.
“The shipbuilding sector will see the cancellation of foreign ownership restrictions in 2018, including design, manufacturing and repair.
“The aircraft manufacturing sector will also see the cancellation of foreign ownership restrictions in 2018, covering various categories including trunk-route aircraft, regional aircraft, general-use aircraft, helicopters, unmanned flying vehicles and aerostats.”