A controversial Chinese government plan that would force foreign automakers to surrender their electric vehicle technology in exchange for being able to sell vehicles in the world’s largest auto-market is drawing the ire of automakers worldwide. China’s Ministry of Industry and Information Technology is currently writing up a 10-year plan designed to transform the country into the “world’s leader” in developing and building green vehicles, including hybrids and electric cars.
According to The Wall Street Journal, the plan that would force automakers to surrender their technology was revealed by four international auto execs who, understandably, are not in favor of the dictatorship’s tactics.
One unnamed senior exec told the Journal, that the move is, “tantamount to China strong-arming foreign auto makers to give up battery, electric-motor, and control technology in exchange for market access.” And he added: “We don’t like it.”
While no specific executives have publicly commented on the proposed green car plan, the auto industry is not the first to feel the Chinese government’s tactics, with executives from Siemens and General Electric recently speaking out about the country’s business tactics.
According to a draft of the 10-year plan, the Chinese government would require that automakers who want to create and sell electric vehicles in China would be forced into joint ventures with Chinese companies. That’s nothing new in China, but under this new green car plan, foreign ownership would be limited to a minority stake.