The Ministry of industry and Informatization of China intends to limit the activities of the startups involved in the development of electric cars. Now the country was 486 and the Agency fears that the uncontrolled increase in their numbers may lead to a collapse similar to the “dotcom crisis”.
According to sources, Bloomberg, the new draft regulation is aimed at companies that transfer production of electric cars to outside firms. The document will be clearly defined criteria for when outsourcing will be possible. This will allow artificially limit the entry of new players and will help to more competitive companies.
The bubble formed in the end of the Millennium as a result of the rise of the stock of Internet companies and the emergence of new market participants. It burst in March 2000 when the index of high-tech companies NASDAQ Composite index hundreds of companies went bankrupt or were liquidated, and the heads of some of them have received prison sentences for fraud and embezzlement of clients ‘ funds.
Insiders claim that the new startups that want to leverage the production capacity of other companies, will be required within the preceding three years to invest $ 580 million in research activity in China. Total global sales in two years this should amount to 15 thousand cars, and the size of the paid part of the share capital billion yuan.
In addition, contracts under the new rules it will be possible to conclude a maximum of two plants. Minimum term of agreement is three years, the annual volume of manufacture – not less than 50 thousand electric cars.