The government had hoped state-owned automakers would learn from foreign partners how to be more competitive. But the rule has done more harm than good.
Many Chinese automakers, accustomed to easy profits from their joint ventures, have no incentive to work hard and build their own brands.
The company, listed on the domestic stock market, warned last month that it might have lost 730 million yuan ($120 million) in the first nine months. It attributed the red ink to its inability to improve products to meet evolving consumer preferences.