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China to do more to foster development of new energy vehicle industry

China is currently researching how to increase the scope of its electric vehicle testing city program, the Shanghai Securities Journal reported today. The statement was made by Assistant Director of the CPPCC Economic Committee and former Director of the Ministry of Industry and Information Technology Li Yizhong at last Friday's 2012 Global Energy Efficiency and New Energy Automotive Industry Conference.

According to Mr. Li (pictured), there are currently 25 test cities in China aimed at developing new energy vehicle standards and popularizing their usage. In addition, the government has been testing subsidies for new energy vehicles purchases in six cities. A total of 16,000 new energy vehicles have been involved in the testing work, and over 10,000 charging stations and posts have been constructed.

Despite those accomplishments, Mr. Li is still believes the country has room to improve. "There are still some areas which need work due to shortcomings in certain policies," he said, adding that "the actual amount of [new energy vehicle] popularization work has yet to meet planned targets." China is still working hard to make sure universal standards for new energy vehicle are implemented through the country. Some of the measures it is taking include providing buyers of passenger automobiles with engines 1.6 L or smaller subsidies of 3,000 yuan ($475.93) and partially or completely exempting owners of new energy vehicles from paying certain taxes.

Mr. Li recommends that more attention be paid to investing in technological research and implementing tax policies aimed at fostering further development in the industry.

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