China has planned to allow for foreign car companies to manufacture cars in their country in exchange for their intellectual property. The plan by China is to allow car companies to open up shop in their country but in doing so will give up their hybrid and battery powered car technologies to the Chinese government in exchange. China will own 51% stakes in any of the car companies that choose to move their business to China. This seems like the worst deal in the world. Even if China has one the largest car markets in the world, it's very bullish of them to only allow companies in if they divulge the technology that sets them all apart from each other. Understandably, automakers are not happy on the decision and are hesitant on expanding to China.
[Source: Wall Street Journal]
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