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Daimler plans third Chinese venture

Daimler-Chrysler is seeking Chinese government approval for a joint venture in Fujian province to manufacture commercial vehicles for export, South China Morning Post said. The Chinese partner would be Dong Nan (Fujian) Auto Industry, a 50-50 joint venture between Taiwan's Yulon Motor and Fujian Auto Industry Group. The venture would produce NCV2, Vaneo and Vito commercial vehicles for southeast Asia.

The proposal was awaiting approval by the State Development and Reform Commission. It would be Daimler's third joint venture in China – it already has ventures with Beijing Jeep and Yaxing Truck Group in Yangzhou, Jiangsu province, and would thus would be counter to the government's policy of restricting foreign carmakers to two joint ventures in China. However Ling Yuzhang, chairman of Dong Nan, said that following China's admission to the World Trade Organisation, the rule had been relaxed and the proposal was in line with official policy.

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