China simplifies approval rules for new auto joint ventures

In this April 26, 2018, photo, cleaners wait near a MINI Cooper Cabrio displayed at the China Auto Show in Beijing. BMW Group and China's biggest SUV brand, Great Wall Motor, announced Tuesday, July 10, 2018, a partnership to produce electric MINI vehicles in China.[Photo: AP]

China's top economic planner has decided to streamline the rules regarding the procedure of getting new Sino-foreign auto joint ventures approved.

The longstanding practice of checking and ratifying for administration of auto joint ventures will be changed into the management mode of filing for record or registration only, according to a source of the National Development and Reform Commission (NDRC).

The new rules, which are effective on Jan. 10, 2019, also apply to administration of new electric passenger cars and auto investment projects overseen by the provincial government, according to the NDRC source.

In recent years, China has reduced the number of restricted measures on foreign investment by nearly two-thirds and also significantly reformed the approval system for foreign investment.

The new rules have been approved by the State Council, China's cabinet.