Too many cars and too much traffic. Beijing tries to rein in the deteriorating problems with administrative measures. The fiscal incentives to buy cars have been consigned to history. The country is no longer in danger of recession and there is no need to favor that consumption. Lately, a new rule promulgated jointly by the Ministry of Commerce and the National Development and Reform Commission downgraded the foreign investment for “finished vehicles” from “encouraged” to “permitted”. The same rule allows now FDI in new sectors, so the downgrading of the automotive sector is even more...
Prior to Christmas Day, the Catalogue for the Guidance of Foreign Investment Industries (Revised 2011) was approved by the State Council and promulgated jointly by the National Development and Reform Commission (NDRC) and the Ministry of Commerce. The changes in the new Catalogue are driven by China’s economic status and international economic environment and reflect China’s overall economic orientation of long-term sustained development in the future.
Upgrade Traditional Manufacturing
As for traditional manufacturing such as textile, chemicals and machinery, China has unmatched powerful...
Mandarin Capital Partners MD, Osservatorio Asia Chairman, Harvard Business School MBA