Report: China tells foreign automakers they must build low-cost local brands
Apparently, as much as 30 percent of any additional production capacity over what has already been agreed upon will be earmarked for the Chinese market, and that percentage of vehicles would have to be sold under a new Chinese brand name at a "low cost."
It's not necessarily more brands China wants, it's intellectual property. "During 10 years of trying, China has become a big factory for foreign companies, and their Chinese partners didn't get advanced technology. Through this industrial policy they would like Chinese carmakers to get IP in order to own this market," said Lang Xuehong, automotive analyst with Sinotrust, quoted by Financial Times.
Will the scales fall in favor of more access to the lucrative Chinese market or will the desire to keep valuable intellectual property under the roof of the company that actually earned it through actual research and development triumph? We'll see.
[Source: Financial Times – sub. req.]
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