Editorial Automotive 25

German automakers in China have been waiting a long time for this step: the relaxation of the joint venture obligation. This requirement stipulated that foreign manufacturers could never hold more than 50 percent of a company in China and could only operate joint ventures with domestic partners. In the commercial vehicle business, this requirement fell two years ago; foreign manufacturers of electric and hybrid cars were already exempt from it. Since the beginning of the year, the obligation to involve domestic companies has largely been lifted for the entire industry. But not everyone is entirely happy with this relaxation, writes Christian Domke-Seidel in his analysis. Because it harbors pitfalls.