China Puts the Brakes on Foreign Automakers

[marmar]

from Der Spiegel:



For years, foreign automobile companies have reaped most of the profits to be had in the enormous Chinese market. But in a largely unnoticed change, Beijing is now ending their preferential treatment of carmakers from abroad to focus more on developing domestic technology and brands.

The sea change is coming slowly, as if to protect those affected from being startled out of their festive mood. At the end of last year, the Chinese government's National Development and Reform Commission (NDRC) approved a new industrial plan that could have a devastating effect on German car manufacturers like Volkswagen, BMW and Mercedes once it takes effect in late January.

These companies have worked to make China one of their most important and successful foreign markets, while Beijing industrial planning officials looked on in frustration. In the first 11 months of last year, VW alone sold more than 2 million vehicles in there -- up more than 15 percent from 2010.

But this kind of growth could now be over. To protect the "healthy development" of their domestic auto industry, the NDRC said it would remove car manufacturing from the list of industries where it encourages foreign investment. The goal of the change is clear: Beijing wants to help its own carmakers break into the market. ................(more)

The complete piece is at: http://www.spiegel.de/international/business/0,1518,807582,00.html

[FreakinDJ]

1. So much for the falacy of Free Trade

[Angry Dragon]

3. +12505

[FreakinDJ]

4. More like China is now manipulating the Global Economy

At a time when the EU needs it the most China has put the brakes on already strained finances sorely needed to keep the Euro afloat.

China is Cash rich and practicing "Disaster Capitolism"

[treestar]

2. But do they really want to drive the vehicles they would make?

Another way to lower their population?

[Joe Shlabotnik]

5. perhaps we should stop importing crappy Chinese parts for our cars. n/t