China to drop joint venture rule for foreign automakers?
That means that chances are, someone higher up in the food chain has been meditating on a similar move. If the joint-venture rule were abolished, we could very well see a new influx of international carmakers into the Chinese market. Most automakers prefer to not have to enter into mandatory joint venture agreements for a number of reasons. Beyond simply having to share technology and ideas, forced joint ventures can be cumbersome and costly to operate.
[Source: The Truth About Cars]
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