The Chinese government appears to be finalizing policies that will allow local authorities to continue funding for electric vehicle (EV) companies, Bloomberg reports, in response to rising consumer demand.
This would be a reversal of the stance set out in December last year to scrap local incentives to subsidize EV, following concerns that this would stunt the development of China’s new-energy vehicle sector.
Under the new policy, local funding would continue to be capped at 50% of the aid provided by Beijing, sources told Bloomberg. This will help to keep EV affordable for the growing consumer market, considered a key emerging industry by the central government.
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