Bajaj wary of China’s ownership norms

DAVOS: Chinese restrictions on foreign ownership are hindering one of the developing world’s largest motorcycle companies from tapping into what could be a lucrative market. 

Rahul Bajaj, chairman of Bajaj Auto Ltd, says India’s second-biggest motorcycle maker would expand into China, but only if it were able to gain majority foreign ownership, which is  barred in some sectors, including automobiles.

Five years into China’s membership in the World Trade Organisation, pressure is growing on the government to open up various sectors of the economy.

“We are expanding very fast in international markets. The only big country (in which) we are not planning anything at the moment is China, because I don’t get majority foreign equity,” Bajaj said on Tuesday.

“I want ownership. I can get at most 50%, and I don’t like that. That’s why I’m saying India is a more open economy than China.” —Reuters