European Chamber releases statement on rumours about joint venture requirements for auto components industry in China Go back »

2014-08-29 | All chapters

Beijing, 29^th August, 2014 – The European Chamber has read numerous media reports in the past week about a possible forthcoming announcement by the Chinese authorities that would require foreign automotive parts suppliers in China to form joint ventures with Chinese domestic partners to operate in the Chinese marketplace. These rumours stem from a statement given by a European company to German media. Such rumours have caused concern amongst our member companies.

In response to these rumours, the European Chamber has spoken to the relevant Chinese authorities, the company in question, the Chinese automotive manufacturers association, as well as numerous member companies in the auto parts sector. The European Chamber is confident that these rumours are unfounded and that the Chinese government has no intention to require the formation of joint ventures in the sector. The European Chamber has been reassured by the Chinese authorities that such a move would be contrary to government intentions to further liberalise the auto parts sector.

While the Chamber does not intend to engage in speculations, it could be the case that the current rumours are the result of a misunderstanding stemming from existing restrictions dating from 2011 for supply companies in the e-vehicle manufacturing segment.

About the European Union Chamber of Commerce in China

The European Union Chamber of Commerce in China was originally founded by 51 member companies based in China on 19th October 2000. It now has approximately 1,800 member companies throughout China across nine offices in seven chapters. The rationale for the establishment of the European Chamber was based on the need of the European Union and European businesses in China to find a common voice within various business sectors. The European Chamber is recognised by the European Commission and the Chinese authorities as the official voice of European Business in China, and seeks greater market access and improved operating conditions for European companies.

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