23/04/2020
BEIJING (Reuters) – China will cut its subsidies on new energy vehicles (NEV) by 10% this year, and will expand government purchases of NEVs, the finance ministry said on Thursday.
China will in principle cut such subsidies by 20% in 2021 and 30% in 2022, the finance ministry said in a statement. However, it will not cut subsidies on qualified new energy commercial vehicles earmarked for public purposes this year.
Under the plan, China would extend subsidies for NEV purchases to 2022, rather than ending them this year, and extend their purchase tax exemption for two years.
China will slightly lift the requirements for the driving range and power efficiency of cars qualified for the subsidies, the statement said, adding authorities will support the sales of cars with swappable batteries, a technology that has been pursued by Chinese electric vehicle makers Nio Inc (NIO.N) and BAIC BluePark (600733.SS).
Only passenger cars cheaper than 300,000 yuan (34,330.23 pounds) will be offered subsidies, it said. The price is higher than starting price of Tesla Inc’s (TSLA.O) China-made Model 3 sedans.
China also said authorities will give priority to purchase new energy vehicles for government use but did not give further details.
The new policy is effective from April 23. NEVs include battery-powered electric, plug-in hybrid and hydrogen fuel-cell vehicles.
China has set an aggressive goal for NEVs to account for a fifth of auto sales by 2025 compared with the current 5%, as it seeks to reduce pollution and cultivate homegrown champions.
Sales of NEVs, however, contracted for a ninth month in a row in March and were down over 50% from a year earlier, according to data from the China Association of Automobile Manufacturers (CAAM).
Source: Reuters
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15/01/2019
Chinese Premier Li Keqiang presides over a plenary meeting of the State Council, which discusses a draft version of the government work report and analyzes economic work in the first quarter of 2019, Jan. 14, 2019. (Xinhua/Rao Aimin)
BEIJING, Jan. 14 (Xinhua) — Chinese Premier Li Keqiang on Monday called for efforts to ensure economic growth within a reasonable range.
Chairing a plenary meeting of the State Council, which discussed a draft version of the government work report and analyzed economic work in the first quarter of 2019, Li said the country faces a more complicated development environment this year, with growing challenges and downward pressure on the economy, creating arduous tasks for the government.
He urged efforts to strike a balance among stabilizing growth, promoting reforms, restructuring, improving people’s well-being and preventing risks.
The government will strive to innovate and improve its macro-regulation but not resort to massive economic stimulus, Li said.
He said the country will keep economic growth within a reasonable range through range-based, targeted and precise regulation, and resist downward pressure with market vitality unleashed by reform and opening-up.
The government will continue to improve the business environment, foster new momentums, improve weak links, expand the domestic market, and promote coordinated development among different industries and regions.
Efforts will be made to extend the country’s advantage of having sufficient maneuver room for economic development, improve people’s living standards, promote high-quality development, and lay a solid foundation for securing a victory in building a moderately prosperous society in all respects, Li said.
He urged relevant authorities to better implement policies aimed at supporting enterprises and improving people’s livelihood, stabilize and boost market confidence, and strive for a good start to the economy in the first quarter to create conditions favorable to achieving major economic and social development targets set for 2019.
The country achieved its key economic and social targets in 2018, which Li said were “hard-won.”
The draft version of the government work report, which will be submitted for deliberation at the annual session of the National People’s Congress in March, will be distributed to provincial governments and central government departments to solicit opinions, according to a decision made at the meeting.
Posted in China alert, growth, Premier Li, range, Uncategorized |
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