The guiding role of industrial policy on the automobile industry is very important. One of our tasks this year is to revise the development policy of the auto industry. We will carefully study the issue involving the share ratio of the joint venture with the company, and finally have a statement. Lu Xi, deputy director of the Industrial Policy Department of the Ministry of Industry and Information Technology, said at the closed-door meeting of the 2014 China Auto Forum held recently.
The "Automotive Industry Policy" promulgated and implemented 20 years ago clearly stipulates that my country's auto industry follows a 50:50 equity standard between Chinese and foreign parties in terms of joint venture share ratio. The policy that foreign ownership should not exceed 50% is regarded as a red line for the establishment of vehicle joint ventures in China. With China's emphasis on deepening market reforms, whether the Sino-foreign joint ventures in vehicle enterprises can be released to 50% shares. Controversy continues to heat up.
In an open market resource and a fully competitive environment, the weaker party will be under greater pressure. However, with the opening up of cooperation, the gap between independent brands and foreign brands is narrowing, and the distance is getting smaller and smaller. If the joint venture share ratio agreement is released at this time, the dominance, control and discourse power of the joint venture and cooperative development will be passive, especially the talents, procurement network, marketing network and other resources will be attracted to foreign-funded enterprises. Own brand enterprises have a great influence. Xu Jianyi, chairman of FAW Group, said.
Yin Tongyue, chairman of Chery Automobile, also disagrees with opening up the shareholding ratio of the joint venture. Releasing the ratio of joint venture shares will do great harm to Chinese auto companies. The joint venture between Chery Automobile and Jaguar Land Rover will start production of new models in the fourth quarter. At the same time, the management structure and channels of the Chery Jaguar Land Rover joint venture are also being adjusted. Behind it is the game of interests between Chery Automobile and Jaguar Land Rover. Opening a joint-stock ratio is not good news for Chery Automobile.
It is understood that the revision of the automobile industry policy will strengthen how to guide the development and growth of self-owned brand automobiles from the top-level design. Dong Yang, executive vice president and secretary-general of the China Association of Automobile Manufacturers, said: We suggest that this edition of the industrial policy study formulates a sustainable development strategy for China's auto industry, which is oriented to build a strong auto country and supported by protecting the interests of consumers.