In its latest effort to decrease signs of official corruption, China’s new leadership is focusing on high profile, military officials’ perks–their rides.
With new license plate systems for vehicles, luxury cars such as BMW and Bentley will not receive military license plates unless they are registered as military property. Vehicles with military plates are often seen violating traffic regulations but they are rarely stopped by policy and also are exempt from toll charges.
The new system, part of President Xi Jinping’s anticorruption drive, is the most visible move yet against corruption in the military. In an attempt to help local brands, Beijing is proposing steps that would require officials to purchase domestic brands for government fleets.
It isn’t clear how the new rules and emphasis on domestic brands will hit foreign automakers. As we have learned in class and through our reading, China has been a highly profitable market for foreign automakers. How will these new rules affect domestic and foreign automakers in China?