Analysts are quick to point out that China's relaxation of foreign ownership rules for automobile companies isn't so much of a concession linked to tough trade talk from the U.S. as it is an opportunity for China to significantly increase its status as an automobile manufacturing hub.
Over the long-term, the rule change is expected to boost some Chinese automakers and set up the nation to be the "world's factory" for electric vehicles and the EV supply chain. In an important reminder, Macquarie Capital Research points out that foreign auto makers may also find it difficult and costly to extricate themselves from their current joint ventures in China.
Also keep an eye on auto parts stocks today as the China reset mixes up the long-term picture.
Related automaker stocks: OTC:CQCAF, OTCPK:GWLLF, OTCPK:GWLLY, OTCPK:GELYF, OTCPK:GELYY, OTCPK:BYDDY, OTCPK:BYDDF, KNDI, OTCPK:DNFGY, OTCPK:DNFGF, OTCPK:DDAIF, OTCPK:VLKAY, OTCPK:BMWYY, GM, OTCPK:GNZUF, OTCPK:GNZUY, TSLA, F, OTCPK:NSANY, TM, FCAU.
Related auto parts stocks: ALSN, ALV, AXL, BWA, CAAS, CPS, DAN, DLPH, DORM, FDML, FENX, GNTX, JCI, LDL, LEA, LKQ, MBLY, MLR, MNRO, MOD, MPAA, MPG, MTOR, PLOW, SMP, SRI, STRT, SUP, STRT, TEN, THRM, TEN, TOWR, UFAB, VC, VOXX, WBC, ZX.
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