The National Development and Reform Commission (NDRC) – China’s top planning body – has published a set of new regulations targeting tighter restrictions on market entrants, while changing the government’s role in new investment, Caixin reports.
Under the new rules, those looking to invest in China’s auto industry no longer need to file with the central government but can instead register new projects with provincial authorities.
However, only independent companies that produce new-energy vehicles (NEV) will be approved from now on, the rules state, as Beijing commits to moving away from traditional combustion-engine cars.
Even new NEV firms will face higher barriers, as the government attempts to wind down significant overcapacity in the sector. Both foreign and domestic investors are required to have sold 30,000 electric passenger cars or 3,000 electric commercial vehicles over the past two years in order to receive a state permit.