In a revision from an article about the automobile manufacturing industry in its earlier guidelines, the Chinese government now encourages foreign investment into the sector in less developed western regions.
According to the latest guideline jointly issued by the National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOC), foreign direct investment (FDI) will be encouraged into environmentally friendly and labor-intensive industries in the central and western regions, so as to better utilize resources and improve services.
The guideline, effective from June 10, divides the auto parts manufacturing sector into nine areas, including six-speed gearboxes, high-power driving axles, follow-up head-lighting systems, LED head lights, light-weight material applications (e.g. high-strength steel, power metallurgy, and high-intensity composite fiber), clutches, hydraulic bumpers, instrument panel assembly, and seats.
The auto manufacturing sector and related industries will look to benefit from more foreign direct investment, especially core companies that are leading local economic growth.
Utilized foreign capital in central and western regions reached 19.21 billion US dollars, or 17.2 percent of the country's total in 2012, up 36.7 percent and 4.2 percentage points from 2008 respectively. In the first four months of 2013, FDI inflow to China, which excludes those to the financial sector, grew 1.21 percent year on year to 38.34 billion US dollars, according to MOC data.
(Edited by Olivia,olivia@tireworld.com.cn)
