Comment by like_any_other
11 hours ago
The question was, emphasis mine: "which firms in China are controlled by European entities?"
Western brands have investments, but are required by law to have a local partner, that learns the trade and eventually copies the product:
China bars foreign companies from participating on their own in many industries, but in some of those industries foreign companies can participate only by forming a joint venture with a Chinese partner. [..] Partnering with a Chinese business can be tricky for various reasons, so understanding to what you are agreeing is absolutely critical. This is especially true because the Chinese law, the Chinese government, and the Chinese courts will be heavily biased in favor of your joint venture partner in any dispute between your company and your China joint venture partner’s company. - https://harris-sliwoski.com/chinalawblog/china-joint-venture...
> Half the cars on the streets used to be European or American
And more than half the phones in Europe or America are Asian - what's your point?
That’s a common misconception, but it's factually incorrect. European companies can, and do, acquire and control companies in China.
The legal framework and the reality on the ground show a very different picture.
1. The Law Explicitly Allows It: China's Foreign Investment Law (effective since Jan 1, 2020) clearly states that foreign investors are permitted to acquire the shares, equity, or other similar interests of domestic Chinese enterprises.
2. The "Negative List" System: China uses a "Negative List" model. This means any industry not on the list is fully open to foreign investment, often up to 100% ownership. This list has been shrinking every year, opening up more sectors. For instance, all restrictions in the manufacturing sector were removed. While there are still restrictions in very specific strategic areas (like news media or rare earth mining), this is not a blanket ban by any means.
3. Real-World Examples of European-Controlled Companies in China:
You don't have to search hard to find major Chinese operations controlled by European firms. Here are just a few high-profile examples:
Automotive: German automaker BMW raised its stake in its Chinese joint venture, BMW Brilliance Automotive, to 75%. This is a landmark case of a European company taking majority control of a major automotive manufacturer in China. Similarly, Volkswagen owns a 75% stake in its EV-focused Volkswagen Anhui venture.
Chemicals: Germany’s BASF is building a massive new Verbund site in Guangdong. It's a €10 billion project that is 100% owned and operated by BASF.
Retail & Consumer Goods: All IKEA (Sweden) stores in China are operated by its wholly-owned subsidiary. French beauty giant L'Oréal and luxury groups like LVMH and Kering all operate through wholly foreign-owned enterprises in China.
Finance: German insurer Allianz established Allianz (China) Insurance Holding, the very first 100% foreign-owned insurance holding company in the country.
So, the idea that a European company "wouldn't be allowed" to buy a Chinese company is a myth. While the process involves regulations (just like any country), it is legally possible and happens frequently across many industries.
> And more than half the phones in Europe or America are Asian - what's your point?
Actually, the US banned the most successful Chinese phone company the second it started gaining market share. At the time, it was the largest phone brand in Europe.
But my point is that European and American companies can and do invest and do business in China, on a massive scale.