OREANDA-NEWS. March 01, 2012. The Chinese government has prepared a document forbidding ministries and agencies to buy cars made by foreign auto companies for the state needs. The document was published on the website of the Ministry of Industry and Information Technology of China and consists of a list of models that are allowed to be bought by the government officials. In the list of cars that are now allowed for purchasing to the state employees, only models manufactured by the Chinese brands were indicated. 

 According to China Association of Automobile Manufacturers (CAAM), the volume of Chinese car market amounted to 14.5 million cars last year, approximately 5% of which related to the share of public procurement.

 The document banning the purchase of foreign cars was the next measure of the Chinese authorities’ struggle with the market capture by foreign companies. In March of the previous year the Chinese government demanded from foreign auto producers that work at the local market to promote local models. Foreign companies operating in China must develop a local brand or share the technology. Otherwise, they will not be able to obtain permission for business development.