State Council Sets Measures For New Energy Automobiles

On February 25, the State Council released a set of high-level policies intended to stimulate further growth in China's new energy automobile sector, a key part of the government's attempt to advance the development and adoption of green technology. Green technology is one of the five development pillars contained in the upcoming 13th Five-Year Plan, which is expected to be released at the completion of this week's "Two Meetings" on Saturday March 5. 

Specifically, the State Council outlines five areas where the government intends to introduce policy incentives:

• Support the research, development and application of new battery technologies, with the government influencing procurement of the newest charging technologies and introducing financial rewards for companies that achieve "revolutionary breakthroughs" in battery technology. 
• Further incentivize the build out of smart charging stations, with subsidies provided to local governments, real estate developers and other entities that construct charging stations.
• Advance the adoption of new energy vehicles among government departments, public transportation and the taxi and logistic industries; at least 50 percent of new government vehicles purchased in a given year must be new energy vehicles. 
• Advance the overall quality of new energy vehicles, supporting relevant standardization and ensuring safe, high-quality manufacturing levels. 
• Improve the financial environment for new energy automobile investments, providing relevant subsidies and support policies, and ensuring that new energy automobiles are exempt from limitations on the number of new vehicles registered in China's cities and municipalities.