Policy | Policy paper | Year | Policy adjustments |
Automotive Industry Policy | The Law on Sino-foreign Joint Ventures | 1979 | Foreign investment ratio must not be less than 25%. |
Automotive Industry Policy | 1994 | Import quotas and import licensing system; The proportion of foreign equity shall not be higher than 50%; Foreign investors may not build more than two joint ventures in China to produce similar vehicle products; Foreign investment shall not enter the field of China’s automobile services; Product localization rate has clear requirements. | |
Automotive Industry Development Policy | 2004 | Remove the share ratio limit for foreign-invested engines; Elimination of the localization policy requirements. | |
Special Measures for Foreign Investment Access (Negative List) | 2018 | Foreign-funded enterprises producing special vehicles and new energy vehicles to remove the restriction of foreign share ratio; Foreign investors in China can build two and less joint ventures to produce similar vehicle products; To eliminate the limit on foreign share stake in commercial vehicle manufacturing by 2020; To abolish the limit on foreign share ratio in passenger car manufacturing in 2022; In 2022, we will lift the limit on the number of similar passenger car products that foreign companies set up joint ventures in China. | |
Regulations on investment regulations for the automobile industry | 2018 | Prohibit new independent fuel vehicle enterprises; Improving the project conditions for new pure electric vehicle enterprises. | |
Automotive Trade Policy | Automotive Trade Policy | 2005 | To abolish the quota system for automobile imports; Adopt an automatic import licensing management system; The total distribution and sales system for automobiles adopting brand authorization. |
Import and Export Tax Rules of the People’s Republic of China | 2006 | The average import tariff on vehicles has dropped to 25%; Import duties on spare parts are reduced to 10% on average. | |
Measures for the Administration of Car Sales | 2017 | Breaking the single system of brand licensing and encouraging parallel imports; The licensing period of the brand is extended to 3 years. | |
Most-favored-nation tax rate adjustment table for imported cars and parts | 2018 | Some vehicle tariffs have fallen to 15%; Tariffs on some parts fell to 6%. |