Turning car joint venture, usually we think of automobile companies, but for parts, the few people concerned.

    Sources said last week, the National Development and Reform Commission, Ministry of Commerce jointly issued "Catalogue of Industries for Foreign Investment (Amendment Draft)", on foreign investment policy be revised, it is proposed foreign investment in China's new car key components of new energy projects the ratio of capital control 50% or less. This is the first time Chinese authorities clearly defined the key components of new energy vehicles, joint venture equity ratio.

    In fact since last year, the proportion of open discussion of a joint venture began, the Chinese auto industry after 30 years of reform and opening-up to today, is bound to encounter this problem, however, joint ventures for the vehicle, as China's new energy vehicles Strategic Planning in the automotive industry focus, it is natural to choose the relevant departments by controlling the ratio of the joint venture shares to maintain control of joint ventures, strategic initiative to maintain the policy.

    Since reform and opening joint ventures with multinational companies offering car, in fact, the "market for technology" an important part, if not control over the joint venture shares, led by the multinational corporations the right to operate the joint venture, there will be control of key parts of the joint venture, and give the fledgling Chinese auto car put on new energy technology chains, and finally re-assembled into a multinational base results.

    In fact, the core technology, foreign investment in the monopoly of China's auto parts industry is very prominent. According to the State Information Center, 2009 "China's auto parts industry research" shows that domestic production of petrol electric control system of the top four companies for the UMC, Denso, Siemens and Delphi million vdo source, have foreign background, in which UMC market share of less than 1% of local enterprises.

    Some analysts believe that the key components of the joint venture set share ratio, not only for multinational companies in China as the new company set up the threshold of parts, and this variety because it involves a wide range restrictions, but also the core components of the new energy vehicles, extending to the traditional car sharing components.

    However, any issue has two sides to the joint venture, the Chinese equity stake of not less than 50% of the control means to share and dominate the Chinese side the right to decide the distribution of profits. However, if the foreign forces is different from the actual game may cause the actual control of two areas of different levels, is likely to evolve into a joint venture shares dominant than the Chinese, but the technology is still controlled by the foreign party to the situation.

    Joint limits for the components are not afraid of the proportion of the number of joint ventures, domestic enterprises will not be afraid to use their own brand business R & D of key technologies to increase capacity and control of power, which is the industry for years has been the subject of the appeal.

    Countries to the policy, in fact, to the Chinese automotive vehicles in the new energy technologies to enhance the time, but the policy is, after all, than to the binding of the joint venture shares, how to form research and development capabilities, or business productivity and need their own to consider.

 The article above is transfered from glow plug, and spark plug