Though Chinese market lagged in the early stage of EV development, technology and introduction of new model seemed to be catching up with those of other advanced countries in recent years. According to Chinese government’s latest ‘Rules on the Production Admission Administration of New Energy Automobiles’, the governmental supervision of electric vehicles and industry technologies are drafted in detail with gradual enforcement of national safety standards.

Chinese government placed great importance on the development of EV industry, offering subsidies such as new car purchase subsidy, encouraging corporate fleet procurement and toll booth pass for EVs or HEVs that use Lithium, NiMH, and LiMPO4 batteries.

Because lithium batteries are highly efficient, long lasting and rechargeable, Chinese government invested 30 million RMB in developing lithium battery and related materials and increased tax refund rate for exporting lithium batteries from 13% to 17%. In addition, Chinese regulators imposed compulsory use of new mining helmet that uses LiMPO4 batteries for the headlight, tens of manufacturers commenced production of such helmets as a result.

As far as public transportation is considered, Chinese government is implementing eco-friendly policies in major cities, including subsidizing maximum 600,000 RMB per bus when the fuel cells used in these buses reach efficacy of 50% or more. According to a bill passed in January 2009, in cities like in Beijing, Shanghai, Chongqing, Dalian, Changchun Changsha, Hangzhou, Hefei, Jinan, Kunming, Nanchang, Wuhan, and Shenzhen, Chinese Government are subsidizing 4,000 to 420,000 RMB for hybrid electric cars and 60,000 to 600,000 RMB for electric cars, depending on the car model and fuel efficiency.