China further opens transport market
The road has become easier for overseas freight carriers who are seeking to further penetrate the Chinese transportation market.
Foreign logistics firms can take 75 percent of shares in the road transportation industry from this month, according to a Ministry of Communications document. They can set up holding companies in the road transportation sector in one year’s time – and solely funded companies in three years. This is in line with China’s commitment to WTO and a regulation guiding foreign companies’ investment in road transportation.
Overseas firms take a 75 percent stake in joint-ventures involving cargo transportation, conveying and loading, storage and other auxiliary services, like vehicle repairs. The share can be even larger than 75 percent in companies engaged in container transportation, refrigeration wagon transportation, express delivery, logistics delivery, etc..
A bigger proportion is available to firms engaged in constructing the infrastructure of logistic stations, as well as those engaged in cargo transportation. Joint-ventures in Western China will also benefit.
