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BMW of Germany officially announced that its joint venture Brilliance BMW in China has obtained a new renewal license, BMW's equity in Brilliance BMW has been officially increased from 50% to 75%, and the joint venture Brilliance continues to hold 25% of Brilliance BMW's equity. BMW spent 3.7 billion euros to acquire a 25% stake, BMW said it would complete the payment of the equity acquisition by February 22, BMW's interest in the company will be included in BMW's earnings from February 11, and the partnership agreement between the two parties will be extended to 2040.

In 2003, BMW and Brilliance teamed up to form a 50:50 joint venture, BMW Brilliance. BMW Brilliance Shenyang is the largest BMW factory in the world and is responsible for the production of many models sold in China, including almost all the popular 1 Series, 3 Series (standard and long wheelbase) and extended 5 Series models in China. It also includes several SUVs, including the X1, X2 and X3, as well as the iX3, BMW's latest electric car, which is also scheduled to be introduced into production this year. BMW delivered 846,000 vehicles in China last year, up 8.9 percent year-on-year, while Brilliance China built more than 700,000 vehicles last year and now employs about 23000 people.

BMW and Brilliance China reached a new joint venture agreement in 2018. BMW will expand its stake in Brilliance BMW after China relaxes restrictions on foreign ownership. A few days before the New Year, the NDRC officially announced the relaxation of equity restrictions.

On December 27,2021, the National Development and Reform Commission and the Ministry of Commerce issued Special Administrative Measures for Foreign Investment Access (Negative List)(2021 Edition) and Special Administrative Measures for Foreign Investment Access in Pilot Free Trade Zones (Negative List)(2021 Edition). From January 1,2022, China will cancel the foreign capital share ratio of passenger car manufacturing and the restriction that only two or less automobile enterprises are allowed to be established by the same foreign investor. Previously, China's "Automobile Industry Policy" issued in 1994 required that in a specific historical period of "market for technology", the policy made clear provisions on investment in the automobile industry, including the proportion of foreign ownership should not exceed the upper limit of 50%, in addition to requiring foreign enterprises to establish more than two joint ventures in China for the same type of vehicle products.

The above-mentioned document was revised in 2004 and 2009, but the above-mentioned restrictions were retained and are still applicable today. The negative list on December 27 proposed a major update: "In the field of automobile manufacturing, the restrictions on foreign ownership ratio of passenger car manufacturing and the restrictions on the establishment of two or less joint ventures producing similar vehicle products by the same foreign company in China", which has been implemented for more than 20 years.

BMW was the first beneficiary of the policy loosening. As early as July 2018, foreign media reported that BMW would increase its stake in Brilliance BMW to 75%, but it was denied by Brilliance at that time. Until the evening of October 10, the adjustment of the share ratio was implemented when the Premier of the State Council met with Kruger, Chairman of the German BMW Group. The next day, the two sides issued an announcement confirming the news that BMW would acquire a 25% stake in Brilliance China, raising its stake in Brilliance BMW from 50% to 75%, but the decision would not take effect until the new policy was announced. It is now the first few working days after the Lunar New Year, and BMW has already completed the relevant agreements and all approvals in the first time, only waiting for the market supervision bureau to complete the final procedures.

Brilliance China, a Hong Kong-listed company, broke out that Brilliance Auto Group entered bankruptcy reorganization in 2020. The company also suspended trading due to its failure to disclose the performance of the previous year as scheduled in March 2021 or before. Up to now, it has not resumed trading for nearly a year. Although trapped in suspension, Brilliance China also issued an announcement confirming the news, the transaction cost 27.9 billion yuan, is actively considering creating value for shareholders, and there is news that BMW's Tiexi factory is expanding for new models.

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