December 27 (UPI) – Ownership restrictions on foreign automakers will be lifted in 2022 as part of new economic “openness” measures, the Chinese government said on Monday.
Two of Beijing’s “negative lists” which detail sectors of the Chinese economy banned from foreign investors next year have shown that foreign automakers, for the first time, will be allowed to own 100% of their Chinese operations.
Globally, the number of items banned from foreign investors will drop from 33 to 31 in China. In the pilot free zones, this number will be reduced from 30 to 27.
The new negative lists, designed to open up the Chinese economy to foreign investment, will go into effect on January 1.
President Xi Jinping touted the plans for the measures last month, calling them honoring commitments to the World Trade Organization to more completely liberalize key sectors of the economy, such as telecommunications and healthcare. , at a time when global economic integration faces “headwinds.” . “
“Openness is the hallmark of contemporary China,” Xi said on November 4 at the China International Import Expo in Beijing.
In addition to the automatic change, the new negative lists also further relax the caps on foreign investment in the production of key communications equipment.
They could allow a range of foreign companies, including Tesla, Volkswagen, Toyota, Sony, Canon and Ericsson to establish wholly foreign subsidiaries in China, while paving the way for Beijing to join the Comprehensive and Progressive Agreement of 11 countries. for the transpacific. Partnership, state newspaper Global Times reported.