English

By Dai Qi

China issued new regulations on the new energy vehicle (NEV) industry recently and had narrowed its access in a bid to curb blind investment in the area, the Economic Information Daily reported Thursday.

Fresh rules have set up standards not only on planned NEV enterprises but also their shareholders as well as related component industries.

For example, it says the equity ratio of the principal shareholders of a planned NEV enterprise should be above one third and none of the shareholders could withdraw their capital stocks until the project was completed and the production volume has met the building design.

Regarding the projected enterprises, the new rules require them to have specific capabilities for research and development (R&D), manufacturing and testing on related technologies and components, as well as patents and intellectual properties of their core technologies on pure electric vehicles.

Meanwhile, an NEV enterprise project is required to have continuous development capabilities for the pure electric vehicle.

The production capacity of the pure electric passenger vehicle shouldn't be less than 100,000 units and the pure electric commercial vehicle of 5,000 units.

At the same time, the province, where the project is planned to be located, should retain an above-national-average number of the NEVs and have no zombie qualifications of the same kind.

Moreover, the same category for the newly-built pure electric vehicle enterprises in the province is required to produce more than 80 percent of its production capacity.

The new regulations have also proposed standards on NEV components like power and fuel batteries.

Analysts said that the move was to curb the wasting of resources caused by blind investments.

It is predicted that the industry is expected to see more policies, technology, capital and talent concentration on enterprises with more advanced technologies.