(Global Times) China has lifted restrictions that limit foreign ownership in passenger car manufacturers.
The National Development and Reform Commissions also removed restrictions on the creation of two or more joint ventures for the production of the same vehicles by a single foreign investor.
The relaxed rules open the Chinese market for major auto players, including Tesla, Volkswagen, and Toyota, seeking to increase coverage in the leading global market. Domestic auto brands are also expected to benefit.
The move by China happens amid a growing market for new energy vehicle manufacturing, with Tesla already preparing to invest about 1.2 billion yuan or $188 million in boosting its Shanghai factory output.
The new rules are now seen as a significant growth opportunity amid moves by Washington to isolate China from the global industrial chains.
China is now set to rival Asian peers, including India, which has eyes on the booming NEV sector, with Tesla reportedly seeking lower tariffs from New Delhi before entering its market.
TSLA is up +2.42%, VOW3 is up +0.27%, 7203 is up +0.55%.
