Policy paper


Policy adjustments

Automotive Industry Policy

The Law on Sino-foreign Joint Ventures


Foreign investment ratio must not be less than 25%.

Automotive Industry



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


Remove the share ratio limit for foreign-invested engines;

Elimination of the localization policy requirements.

Special Measures for

Foreign Investment

Access (Negative List)


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


Prohibit new independent fuel vehicle enterprises;

Improving the project conditions for new pure electric vehicle enterprises.

Automotive Trade Policy

Automotive Trade Policy


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


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


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


Some vehicle tariffs have fallen to 15%;

Tariffs on some parts fell to 6%.