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Fair competition good for NEV development

Source: | Date: Oct. 12

  • China's new-energy vehicle (NEV) industry is still being hindered by regional protectionism despite government efforts to block it, Xin Guobin, deputy head of the Ministry of Industry and Information Technology (MIIT), recently told reporters in an interview.

  • He pointed out that the NEV industry is facing numerous challenges that include not only the need to catch up with global leaders in car design, power cell, and motor drive, but also the urgency to build enough charging stations. In addition, the NEV industry will not move forward without weeding out regional protectionism, he stressed.

  • In a guidance policy it released on July 21, 2014, the State Council made it clear that local governments must abide by national standards governing NEV manufacturing and charging stations. This means that local governments are barred from formulating their own NEV production and battery charging standards.

  • What's more, any attempt to deny access to local markets, require out-of-town carmakers to purchase locally-made auto parts, or keep consumers from buying NEVs made by non-local automakers will be deemed illegal, the policy says. Some industry analysts believe that eliminating regional protectionism is good for the NEV industry because it will promote fair competition and prompt automakers to improve their competitiveness.