BEIJING – China is drafting Guidelines for Improving Management on Automobile Investment Projects, according to a report by Economic Information Daily citing an official of the National Development and Reform Commission (NDRC).
The content of the guidelines includes to prohibit approval of new investment projects for traditional automobile manufacturing, strictly control over capacity expansion by existing automakers for production of traditional automobiles, strengthen surveillance, analysis and alert on output capacity of automobiles, normalize investment requirements for new energy vehicle projects, vigorously promote R&D of battery and other core technologies and support construction of charging facilities.
With the guidelines the government hopes that automobile enterprises and social capital can rationalize their investment. Moreover, regulatory responsibilities on automobile investment projects should be implemented by the organizations which approve the projects in order to strengthen supervision through the entire process of the projects.
Production and sales of automobiles exceeded 28 million units, up over 13 percent in 2016. Some industry experts pointed out there were already signs of overcapacity as designed output capacity of those new manufacturing facilities in construction already surpassed 6 million units last year.