China to Cancel Restrictions on Low-Emission, Fuel-Efficient Cars

8 November 2005

Xinhua. In a move to encourage higher fuel efficiency, China is preparing to cancel local restrictions on low-emission and small-engine cars in 84 cities in 22 provinces, municipalities and autonomous regions. (Earlier post).

Liu Zhi, director of the Department of Industrial Policy from the National Development and Reform Commission (NDRC), made the remark at the 6th China/Asia Clean Fuels International Conference in Beijing.

Liu said that the coming policy will stipulate a clear definition for economical cars as some low-emission cars are not necessarily fuel-efficient. The apparent rule of thumb is that the car should be less than four meters in length, have an engine with a displacement smaller than 1.4 liters, and be affordable by ordinary people.

“It is unwise to restrict all small cars, not only those of low efficiency, but also efficient ones, especially in China, a country experiencing a booming car industry and suffering blame for its soaring oil demand,” Liu said.

China should encourage environment-friendly small cars with less oil-consumption, he said.

The new policies will also contain tax incentives for producers and users of efficient cars.