China will stop encouraging foreign investments in the auto industries

Posted on Friday, 30 December 2011 , 13:12:14 byEmil

Filed under chinaasianxinhuainvestmentenvironment-friendlyChinaElectric VehicleAsian

China will stop encouraging foreign investments in the auto industries

When it comes to carmakers that want to invest in China, well, next year will not be a very good one, as the country will stop encouraging foreign investment in the auto industry after 7 years of collaboration. This announcement made by the Ministry of Commerce and China's National Reform and Development Commission will come into effect next year, on January 30th. The reason this decision was necessary, according to Xinhua, is the healthy development of domestic auto making.
The foreign carmakers will have some problems as they will need a lot of approvals for new plants in the future if they do not decide to invest in new-energy cars. Even if at a first look the measures seem a little drastic, the government will continue to encourage foreign investors that want to develop energy-saving and environment-friendly technologies, biotechnology, high-end equipment manufacturing, alternative energy, cars that run on alternative fuel and so on.


China will stop encouraging foreign investments in the auto industries image China will stop encouraging foreign investments in the auto industries image