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Streamline administrative approvals for auto manufacturing

Senior automotive executives who are members of China’s parliament, the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC), put forward a variety of legislative proposals related to China’s auto industry during the annual session in Beijing in March. The following is a summary of some of the proposals (arranged alphabetically by last name). – Editor 

An Jin: Government should procure local cars because of social value

JAC’s sales to government procurement are dominated by trucks and MPVs, whilst sedans are insignificant, according to An Jin, chairman of TAnhui Jianghuai Automotive Co. (JAC) and a NPC deputy.

Government procurement makes up 5 percent of JAC’s sales. But the importance of government procurement of local brands, An said, is not in the volume of sales but the social value such a procurement signals. 

Li Shufu: Complicated approval system should be streamlined

China’s complicated administrative approval system for vehicle manufacturing should be simplified, suggested Li Shufu, chairman of Geely Holding Group and a member of CPPCC.

He said the country’s top leaders recently have vowed to streamline the country’s many administrative approval procedures because they disturb the order of a market economy. “The tedious approval mechanism is a disturbance to natural market processes. The new leadership must have the wits to take care of this issue properly,” Li noted. 

Tang Yuxiang: Subsidy needed to further popularize hybrid buses

The Chinese government should continue the subsidy for energy-saving and new energy vehicles in demonstration programs to further popularize hybrid buses, proposed Tang Yuxiang, chairman of Zhengzhou Yutong Bus Co. and a NPC deputy.

Tang called for government subsidies on regular hybrid buses in order to achieve economies of scale in the new energy bus industry. He also suggested that the government put forth a policy to support battery charging infrastructure construction and offer preferential electricity rate. 

Wang Fengying: Internalization of Chinese carmakers needs government support

The Chinese government should have a bigger role in fostering the internationalization of local car brands, proposed Wang Fengying, president of Great Wall Motor Co. and a NPC member. These should include legislative, taxation and financial support,

Wang urged the authorities to update the country’s Foreign Direct Investment Law and establish agencies that specialize in managing overseas investment. 

Xu Ping: Prioritize the development of natural gas and hybrid vehicles

China should prioritize the development of natural gas vehicles (NGVs) and hybrid vehicles, proposed Xu Ping, chairman of Dongfeng Motor Corp. and a member of NPC.

The technology of NGVs and hybrid vehicles is more mature and readily applicable, he said, adding that the natural gas is comparatively cheaper, abundant and easier to obtain. 

Yan Ping: Government subsidies needed for State IV emission compliance

As the new State IV emission standards for commercial vehicles will come into effect on July 1, demand for commercial vehicles will drop because of the high cost, according to Yan Ping, chairman of Guangxi Yuchai Machinery Co. and a NPC member. A panic buying of State III vehicles is expected.

He proposed that the government should subsidize manufacturers of medium and heavy-duty vehicles compliant with State IV standards. The new emission standards will increase the cost of a medium truck by ¥20,000-¥30,000 ($3,200-$4,800) and a heavy-duty truck by ¥30,000-¥40,000. 

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