Photo Gallery China Changes its Car Building Strategy
Foreign carmakers have long had a largely free hand in China, with domestic models lagging far behind. Here, workers in a factory belonging to the Chinese car company Chery. Now, though, changes in regulations may make it more difficult for foreign companies to grow in China.
Chinese consumers have shown a preference for foreign brands such as VW. Now, foreign investment in the car industry will become more difficult and subject to increased regulations.
Rules thus far have required foreign companies to work together with domestic companies. Beijing had hoped that a technology and know-how transfer would be the result. But the strategy hasn't worked.
Companies like Shanghai Automotive Industry Corp., pictured here, have decayed into little more than cumbersome holding companies.
Workers in a factory outside of Shanghai belonging to Geely Automobile Holding Ltd. Now, China has its eyes on the electric car market.
