Subsidies for new energy cars to be cut again

Subsidies for new energy cars will be cut further this year before being phased out in China altogether by the end of 2020, a source close to the matter said on Wednesday. The move would accelerate the exit of uncompetitive players from the fast-growing sector.

"The move was scheduled to be released by the end of 2017, but there was some controversy and hence has been delayed for a while," said Wu Zhixin, vice-president of the China Automotive Technology & Research Center, which participated in drafting the plan.

"The ministries concerned, including the Ministry of Finance and the Ministry of Industry and Information Technology, have reached a consensus on the final draft and submitted it for final approval, so I believe it will be released soon," he told China Daily during a new energy car forum held in Liuzhou, the Guangxi Zhuang autonomous region.