CHINA will allow full foreign ownership of carmakers in five years, ending restrictions that helped to fuel its trade dispute with the US as it promotes electric car development.
The change would scrap rules that require global carmakers to work through state-owned partners, forcing them to share technology with potential competitors.
It was unclear whether that might mollify Donald Trump, who has threatened tariff hikes on $150 billion US of Chinese goods in response to complaints Beijing pressures foreign companies to hand over technology.
The step reflects growing official confidence in China’s young but fast-growing carmakers and a desire to make the industry more flexible as Beijing promotes development of electric cars.
Carmakers had been waiting for details since President Xi Jinping announced last week that restrictions would be eased and auto import duties reduced.
Some saw Xi’s promise as an attempt to placate Trump, but Chinese officials said the plans had nothing to do with the dispute.
Yesterday’s announcement coincided with an order to importers of US sorghum to post bonds to pay possible anti-dumping duties in a separate dispute.
It said preliminary results of a trade probe found US sorghum, a grain used as animal feed and in alcohol distilling, was sold at prices that hurt Chinese farmers.
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