Chinese Government Pressuring Foreign Automakers to Create Domestic Brands, Report Says

Foreign automakers are reportedly being pressured by the Chinese government to create domestic brands as a condition of approval of expansion of local production facilities, according to the Financial Times.

Although the rapidly-expanding Chinese car market has many foreign automakers salivating at the prospect of millions of potential sales in the booming market, doing business in China is not without peril and pitfalls, as many of them are now learning.

Although many automakers claim they already have a China domestic-market brand in the plans, others see it as a more calculated ploy by local affiliates to extract intellectual property from foreign carmakers. General Motors’ recently-launched Baojun brand is one of the first domestic brands launched by a non-Chinese automaker.

Source: Financial Times (Subscription Required)

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