The exponential growth of China's auto market has left many automakers licking their lips at the thought of rampant profit. Recent years have seen the country's government spur foreign investment with various incentives, including reduced tariffs on imported manufacturing machinery. According to Automotive News, that's all about to stop. China has said it will cease encouraging foreign investment in a move designed to promote natural growth in the sector. The country saw automotive growth drop to one tenth of what it was in 2010.
That's not to say China is putting a stop to all aid to foreign automotive investment. The report says China will still encourage foreign automakers to develop green technologies within its borders.

Automakers from General Motors to Toyota and Volkswagen have all focused more heavily on the Chinese auto market in recent years. Honda recently began producing Fit models in China for sale in Canada as part of an effort to move more of the company's production out of Japan, as well. Similar strategies may become less cost effective as China makes it more difficult for foreign companies to invest in manufacturing.

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