Gasgoo.com (Shanghai July 12) - "Joint ventures are pushing for own brands... due to commercial interests," Chen Jianguo, assistant head of the National Development and Reform Commission's Department of Industry, stated at the China Brand Auto Expo's research summit held last Friday. According to a report appearing on the Economic Observer, Mr. Chen is pleased that recent efforts for independent own brands and new energy vehicles are due to business interests and are not forced on enterprises by the government or other associations.
The announcement marks the first time the NDRC has commented on the issue of independent brands, which were believed by many in the industry to be a government-coerced decision. Mr. Chen (pictured) said that he believed the government was only trying to even the uneven playing field between joint ventures and own brands.
However, some in the industry believe Mr. Chen's comments at the summit are in contradiction with his previous announcement that the government should enact approval conditions for JVs. While the government would not explicitly ask manufacturers to establish own brands, it may be a crucial requirement for enterprises to gain official approval.
Mr. Chen believes that foreign enterprises should not just sell parts to China, but rather allow own brands to research and develop new technology. However, Mr. Chen denied the notion that own brands should refuse foreign investment.
