China May Allow Private Investment in State-Owned Carmakers

China is reviewing a plan that would encourage state-controlled carmakers to pursue private vehicle manufacturers as investors, sources tell Bloomberg News.

The goal, outlined in a policy paper being circulated among government agencies, is to help the country’s government-backed companies compete with foreign carmakers on a global scale.

The proposal doesn’t indicate what level of outside investment would be allowed, Bloomberg says. The news service also notes that the plan may be changed by feedback from government and industry leaders.

But Bloomberg points out that China has already implemented mixed-ownership reform. It cites state-controlled companies in the telecom (China Unicom Hong Kong Ltd.) and airline (China Eastern Airlines Corp.) sectors.