China’s State Council called on major city governments to relax or even cancel restrictions designed to limit car sales, aiming to boost a struggling auto market now entering its second year of contraction, reported Caixin.
Many of the country’s largest cities, including Beijing, Shanghai, Shenzhen and Guangzhou, have restricted issuance of new license plates to keep congestion and pollution in check. The latest call was contained in a document dated Aug. 16 and published Tuesday on the website of the State Council, China’s cabinet. The document was more broadly focused on steps that could stimulate consumption as China’s economic growth slows sharply.
The State Council’s call comes two months after the similarly powerful National Development and Reform Commission (NDRC), China’s state planner, issued its own document saying that cities shouldn’t introduce new rules to restrict car sales, and ones with such restrictions should shift to encouraging more car use.