Easing ownership limits in auto JVs to benefit consumers

China's plan to ease restrictions on stakes foreign carmakers can own in joint ventures with local partners and reduce automobile import tariffs will encourage competition in the domestic market and benefit consumers, experts said.

President Xi Jinping on Tuesday said at the opening ceremony of the Boao Forum for Asia Annual Conference 2018 that China would relax foreign ownership limits in automobile firms and will significantly lower import tariffs for vehicles.

Yale Zhang, managing director of Shanghai-based consultancy firm Automotive Foresight, said allowing foreign carmakers to have larger share in the world's largest automobile market will result in stiff competition for State-owned companies, but remains good for the overall market.