Movement on Wheels
October 15, 2018
2018 is a special year for China's automobile industry. On April 10, Chinese President Xi Jinping announced at the opening ceremony of the Boao Forum for Asia in Hainan Province that China would loosen the foreign equity limit for joint ventures in the auto sector and substantially cut auto tariffs. Seven days later, the National Development and Reform commission pledged to phase out the foreign equity limit for joint ventures. On May 22, the Ministry of Finance revealed that from July 1, 2018, tariffs on both the whole unit and auto parts would be reduced. At the end of 2017, China ranked top in both vehicle production and sales worldwide for nine years, and domestic brands accounted for nearly half of total sales. Opening the domestic auto market to overseas competitors indicates confidence in the auto industry and China's determination to open itself wider to the outside world.