China has "zero tolerance" for subsidy fraud by new energy vehicle makers and its determination to develop eco-friendly vehicles is unwavering, a government official said on Sunday.
Miao Wei, Minister of Industry and Information Technology, made the remarks at the "ministers' passage" of the annual meeting of the National People's Congress, the country's top legislature, on Sunday.
China's Ministry of Industry and Information Technology (MIIT) will introduce alternative subsidy policies, improve the existing subsidy application process, and step up scrutiny on subsidies offered to car makers, Miao noted.
"We are planning to set up a new trading system based on the average fuel consumption ratings of car makers, and manufacturers that could not meet a certain quota would have to buy it from the market," Miao said, adding that the ministry is soliciting public opinions on its website.
China has been giving consumers and automakers subsidies to promote the use of electric vehicles as part of a national push to cut dependence on oil imports and reduce air pollution.
The Chinese government at all levels spent a total of 90 billion yuan (13 billion US dollars) in 2015 in the sector, including direct cash subsidies for electric-vehicle makers and for the construction of public charging stations, according to UBS Securities.
In early February, China's Ministry of Industry and Information Technology (MIIT) released a list of seven Chinese automakers that have received administrative penalties for cheating an electric vehicle subsidy program.
China will gradually phase out subsidies for green energy vehicles until they are fully eliminated in 2021.
