One of China’s most prominent industrialists has attacked a key plank of Beijing’s strategy to foster a global auto industry, saying the shared equity structure with foreign brands had turned domestic manufacturers into spoilt children.

Li Shufu , billionaire chairman of carmaker Geely, said the government had handed Chinese manufacturers a “sugar-coated bomb” by insisting foreign peers establish joint ventures in the country and control no more than 50 per cent. Chinese brands have become complacent, he said, knowing they would always control half of businesses run with profitable overseas manufacturers that generate healthy sales fuelled by foreign brands.

“This actually is not so constructive for the healthy growth of the ‘kids’,” he said, referring to the domestic brands. “It has defeated its own purpose by harming the Chinese players.