The Ministry of Industry and Information Technology, Ministry of Finance, Ministry of Commerce and two other administrations have co-released a new regulation called “dual points” for automakers, which urges them to cut down on the production of gasoline and diesel vehicles and promote new energy cars, the 21st Century Business Herald reported.
The new, point-based regulation means that automakers will lose points on the import and manufacture of fuel-consumed cars, and gain points on the production of green energy cars. The rule will take effect from April 1, 2018.
The new policy will force many automakers to adjust their business structures and begin the transformation to new energy cars, said Fang Jianhua, chairman of the New Energy Car Venture Capital Sub-fund at the National Fund for Technology Transfer and Commercialization.
For example, Geely Automobile has put forward a plan to boost sales of new energy cars to 90% of its total sales.
By the end of 2016, there were 194 million vehicles in China. Gasoline and diesel used for cars has accounted for more than 70% of total fuel consumption.
The efficiency of internal combustion engines systems is only about 50% that of electrical vehicles systems. In addition to reducing pollution in congested cities, there will be considerable energy savings. This brilliant strategy of China also ties in with its massive investments in sustainable solar, wind and hydroelectric power.
This is, by far, a brilliant move by any government in the our modern history. It is a smooth operation, the chinese will eliminate dependency on foreign technology, and at the same time bend the whole industry to follow their lead and regulations in China. It will simultaneously help China fix its notorous air quality in big cities and, more importantly, build its way to the most important powerhouse on new energy tech according to 13th plan. Kill two birds with one stone, Huh!
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