China will gradually lift restrictions on the purchase of new-energy vehicles in various regions, according to a decarbonization action plan released on Wednesday, which is set to offer another major boost to the industry.
The move comes after the US and the EU have taken protectionist moves against Chinese electric vehicles (EVs) based on claims of "overcapacity" in China, with Washington imposing steep tariffs on Chinese EVs and Brussels launching a so-called anti-subsidy probe into Chinese EVs.
The plan to lift restrictions on purchases of new-energy vehicles in various major cities that have a long waiting list for being eligible to buy a car could potentially unleash huge demand, effectively debunking the so-called overcapacity fallacy.
China's State Council on Wednesday unveiled a detailed action plan to cut carbon emissions in 2024 and 2025, with major goals in cutting fossil fuel consumption, increasing the use of clean energy and upgrading steel and other industries.
The plan includes major steps to reduce carbon emissions in the transport industry, with concrete plans for infrastructure upgrades and the promotion of new-energy vehicles.
The plan also said that China will accelerate the elimination of old motor vehicles and tighten the energy consumption limits for standard fuel vehicles, while also gradually lifting restrictions on purchases of new-energy vehicles in various regions. 新能源车市场再迎利好 逐步取消各地新能源汽车限购
