While most countries have been making a statement this new year with dazzling fireworks displays, China appears keener on putting the frighteners on global car giants such as GM and Volkswagen.
A joint announcement from National Reform and Development Commission and the Ministry of Commerce revealed that China was withdrawing support for foreign car makers in the country, with a view to encouraging home grown car makers. The report, delivered via state media, did not, however reveal exactly what support they were withdrawing.
It could quite simply be that China will be less willing to allow non Chinese car makers from expanding their operations in China. While the lack of details does mean no specific threat has been identified, the news will not go down well with automotive Chief Executives in the US, Japan and Europe.
China is of course the world's largest car market and the ability to manufacture cars within China itself means that firms such as VW, Toyota and GM are able to keep production costs to an absolute minimum. However, if China limits its ability to invest in new manufacturing facilities, for example, it could be very bad news for these car giants.
The news follows the recent tit-for-tat moves between the US and China, whereby the US levied high taxes on cheap Chinese car tyres, a decision that caused China to levy a higher tax on some cars built in the USA.
Car makers around the world have been relying on Chinese growth in order to compensate for poor sales in the US and the struggling Eurozone. Time will tell how much the move will help homegrown Chinese car firms. Will the world be buying Chinese made cars in the future? Or will they be seen as more likely to suffer a car breakdown than their longer established US, European and Japanese rivals?
Watch this space.
Breakdown Cover from 
