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EU Trade Group: China Won’t Force Suppliers to Partner
China has no intention of requiring auto suppliers in China to find Chinese partners for their independent operations, says the European Union Chamber of Commerce in China.
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China has no intention of requiring auto suppliers in China to find Chinese partners for their independent operations, says the European Union Chamber of Commerce in China.
The chamber's assessment counters a report last week by Stuttgarter Zeitung. The newspaper cited a German supplier who claimed several unidentified German vendors were advised they needed to form joint ventures to continue doing business in China.
The chamber found no evidence of such a plan after talking to Chinese regulators, suppliers, carmakers and trade groups. Chinese authorities emphasize that forced partnerships contradict the central government's desire to liberalize the auto components market.
The EU chamber theorizes that the original report stemmed from a misunderstanding of three-year-old restrictions that apply only to suppliers of electric vehicle components.
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