China has further trimmed its negative list as it plans to open up the auto sector to foreign investment.

According to the latest revisions, the country’s negative list for overseas investment now has been reduced to 31 items, and the free trade zones’ negative list now has only 27 items. Starting from January 1, 2022, the restriction on foreign investment in passenger cars will be lifted, and the previous restriction that the same foreign investor can only establish two or fewer joint ventures in China to produce similar automotive products will also be lifted.

The auto industry in China will be reshuffled as many joint ventures will make new choices.