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Economy

Beijing to allow majority foreign-owned auto ventures

Plan raises 50% investment cap by 2025

China will relax restrictions on foreign investment in joint auto ventures.

BEIJING -- China will raise the maximum stake of 50% that foreign companies can own in joint auto manufacturing ventures by 2025, the government said Tuesday, a move that prompted cheers abroad but apprehension at home.

A development plan for the domestic auto industry devised by government agencies states that capital controls concerning investments in joint ventures will be relaxed "in an orderly manner." Authorities have not specified a schedule or the scale of the deregulation.

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