China may lift cap on foreign carmaker stakes in JVs

Beijing

CHINA'S government is considering the removal of caps on stakes foreign carmakers can own in joint ventures (JVs) with local partners, potentially loosening a policy criticised for shielding state-owned companies from competition and building their own brands.

Xu Shaoshi, chairman of the National Development and Reform Commission, said the government is looking into lifting the 50 per cent cap in an interview at a World Economic Forum event in Tianjin. China has mandated that foreign players enter JVs with domestic partners to operate in the country since 1994.