Xi's reforms could make Chinese car manufacturers work harder
Xi Jinping has announced China would make its car market more open, and the country has now removed its 50% cap on foreign ownership of joint ventures for automotive manufacturing.
The cap has been in place since 1994 and demanded that foreign companies could only manufacture in China if they did so through a partnership at least 50% owned by a Chinese counterpart.
While this could put pressure on Chinese manufacturers which can no longer rely on their foreign counterparts, it could also help to strengthen Chinese brands.
According to Bloomberg, local manufacturers had previously “banked” on German, US or Japanese brands to keep sales up, but the reform will come as a challenge and “a good stimulus to urge Chinese companies to strengthen their own brands at a faster pace rather than relying on the joint ventures to feed them”, as the newspaper was told by Yale Zhang, an analyst at Foresight Co in Shanghai.
The outlet also added that of China’s 24.8mn cars sold in 2017, over half carried foreign nameplates.
Following the official reform, the South China Morning Post reported that Chinese car manufacturers saw their stocks recall.
Credit Suisse reduced the stock price targets of major Chinese car manufacturers “in anticipation of reduced bargaining power for local partners”, the newspaper said.
In Hong Kong and Shanghai, stocks went down including BAIS Motor by 13%, Brilliance China Automotive Holding by 8.9% and Guangzhou Automobile Group by 8.7%.
Amobee Appoints Nick Brien As CEO
In its latest strategic move, Amobee—a global multimedia advertising leader—announced that Nick Brien will be its Chief Executive Officer. The company is entirely owned by Singtel, Asia’s leading communications technology organisation, which provides consumers with mobile, broadband, and TV and businesses with data hosting, cloud, network infrastructure, analytics, and cybersecurity tools.
Brien, who has worked for Microsoft, Intel, P&G, and American Express, will take over to drive the next generation of advertising tech. Said Evangelos Simoudis, Chairman of the Board of Amobee: ‘Nick has the deep expertise in advertising that we need to seize the market opportunities ahead’.
How Did Brien Get Here?
Before joining Amobee, Brien led 15,000 people across 40 divisions as CEO of the Americas for Dentsu International. For thirty years, he’s helped brands pilot unique advertisements, keeping up with the latest trends. He’s served as CEO of McCann Worldgroup, global CEO of IPG Mediabrands, President of Hearst Marketing Services, and CEO of iCrossing. Over the course of his career, he’s consistently strategised how to keep up with digital shifts. Now, he’ll capitalise on Amobee’s legions of experienced data scientists and developers.
‘I’m excited to be joining Amobee at such a transformative time in our industry’, Brien explained. ‘We’ll pilot advertising accountability and intelligent decisioning. And there’s no doubt in my mind that optimising media performance—whether you’re targeting, planning, buying, or delivering—can only be achieved using applied science, machine learning, and data analytics’.
What Does This Mean for Amobee?
Amobee is set on growing its personal brand within the advertising sector. As APAC social media influencers, Gen Z growth hackers, and viral content producers start to enter the field, established companies will be working doubly hard to keep up. Amobee, however, is still looking good. With a Gartner Magic Quadrant for Ad Tech, a Forrester New Wave recognition, and now, Nick Brien as CEO, the firm is set up for success.