U-turn: China is letting Hyundai buy out a joint carmaking venture
- The rare action comes as Beijing has pledged to provide fairer competition for foreign corporations in the Chinese market
- South Korean companies have been leaving the country, with Samsung closing its last mobile phone production line in China last month
Beijing is letting Hyundai Group, the South Korean carmaker, gain full ownership of one of its mainland operations – a rare move by China to cede its stake in a joint venture with a foreign company, the South China Morning Post has learned.
The action comes as Beijing, now in a bruising trade dispute with Washington, has pledged to provide fairer competition for foreign corporations in the Chinese market.
Hyundai Group has several joint ventures in China, including operations in Beijing and Sichuan. Sichuan Hyundai, which makes large vehicles like buses and heavy trucks, intends to attain full ownership in its China operation, buying all shares held by its Chinese joint-venture partner.
“We are considering a range of options, including acquiring shares [of the Chinese joint venture],” Lee Sang-eun, a spokeswoman of Hyundai Motors in Seoul, said in response to a query.
“[But] nothing is concrete at the moment; the final decision will be dependent on future market situations,” the spokeswoman added, without elaboration.
A Hyundai senior official in Seoul, who spoke on condition of anonymity, said his company aimed to complete the acquisition by the end of this year or early next year.