China 'to withdraw' foreign car investment support

[alp227]

China has said it will withdraw support for foreign investment in the country's car industry to encourage domestic carmakers, according to state media.

The Xinhua news agency cited a joint announcement from the Ministry of Commerce and the National Reform and Development Commission.

The report did not provide details of what support was being withdrawn.

Some of the world's largest carmakers, including America's General Motors and Germany's Volkswagen, operate in China.

full: http://www.bbc.co.uk/news/business-16360330

[SixthSense]

1. technically the Chinese translation is

"They have no technology we have not already stolen."

[Dover]

2. It will be interesting to see what that means for the car companies already entrenched

and invested in China. I think China has purchased some car companies (like Volvo) from the US. (who had bought them from Europeans). So what do they need us for at this point? Maybe they will come up with new technology that allows them to
skip over or at least cut short the int. combustion engine that would keep them dependent on the oil industry. China doesn't
have to go through an full fledged industrial era. They can jump ahead.

[nadinbrzezinski]

3. Well, then I am not surprised

they have been playing that game for a while... and we simply do not get it.

Suffice it to say that might force foreign manufacturers to ahem... reassess their role in China... and free trade... a girl can dream.

[FreakinDJ]

4. So much for the "Illusion of Free Trade"

Lets just call it what it is

[pampango]

5. "China to open more sectors to foreign investors" but "withdraw support for foreign capital in auto

manufacturing."

http://www.chinadaily.com.cn/bizchina/2011-12/30/content_14355568.htm

China will open more sectors to foreign investors, encouraging investment in strategic emerging industries, the central government said Thursday.

The National Development and Reform Commission and the Ministry of Commerce jointly issued a new guideline to encourage more foreign investment into energy-saving and environmentally-friendly technologies, new-generation information technology, biotechnology, high-end equipment manufacturing, alternative energy, advanced materials, and alternative-fuel cars.

China will cut down restrictions on foreign investment by allowing them to invest in more sectors while lifting caps on the proportion of foreign capital in some sectors, according to the new guideline.

However, the government will withdraw support for foreign capital in auto manufacturing because of the need of the healthy development of domestic auto making. It will neither support foreign investment in the sectors of polycrystalline silicon and coal chemical due to concerns of industrial overcapacity and repeated construction, according to the guideline.

Sounds like China is withdrawing incentives for foreign investment in auto manufacturing, polycrystalline silicon and coal chemical, while initiating or expanding incentives in other sectors of the economy like "energy-saving and environmentally-friendly technologies, new-generation information technology, biotechnology, high-end equipment manufacturing, alternative energy, advanced materials, and alternative-fuel cars."

[JHB]

6. Translation: we think we've got everything we need for our own auto industry...

...so "inducements" for foreigners to train us up (or appropriate from) are no longer needed, and our guys see a chance to cut them out of the pie.

As for all those other things... we're not done getting everything we can from foreign sources, and if they come over here it's a lot easier for us, so we'll continue to make it easy for them.