China to allow full foreign ownership of passenger car manufacturing

China is set to allow full foreign ownership of passenger car manufacturing from January 1, 2022.

The news comes after a release from the Ministry of Commerce and the National Development and Reform Commission on Monday. The document was among the government’s regular releases on industries blocked from foreign investment.

The 2021 version did not include passenger car manufacturing. The 2020 edition of the list had promised there would be that change in 2022.

The country has gradually peeled back limits on foreign ownership in the domestic automotive industry.

However, Monday’s release showed that the list includes 31 areas in which foreign investment is banned or restricted, including rare earth, film production and distribution, and tobacco products.

In industries such as medical institutions, foreign entities must establish joint ventures with local partners, which generally have a majority stake in the company.