China mulls revising auto joint venture bar

Ownership ratio of joint ventures in the auto industry will be revised, according to Ministry of Industry and Information Technology, China Youth Daily reported on Thursday.

At present, the share ratio held by Chinese company cannot be less than 50 percent in a joint venture. In order to strengthen partnerships with foreign auto manufacturers and benefit from advanced technology, the auto industry policy will be changed, said Ministry of Industry and Information Technology Spokesman Xiao Chunquan at a news conference.

China Association of Automobile Manufacturers General-secretary Dong Yang said on Feb 13 that China should maintain the 50 percent ceiling on international carmakers' ownership in joint ventures. Dong said revising the ratio may cause Chinese automakers to lose their say, adding that he was afraid of China becoming just a processing base.