Influence of the Auto Industry Development Policy upon Foreign Investment

On June 1, 2004, NDRC issued its Auto Industry Development Policy (AIDP). For foreign investors, comprehension of AIDP can help avoid the investment risks in China. 1. A broader development space provided AIDP simplifies the examination and approval procedures towards foreign-owned auto makers. Its Article 48 writes that identical foreign auto maker is allowed to establish no more than two businesses producing same kinds of vehicles ( by passenger vehicle, commercial vehicle and moto…