Li Keqiang: From both sides of the supply and demand force to boost the development of new energy vehicles


Premier Li Keqiang of the State Council presided over the executive meeting of the State Council on February 24 to determine measures to further support the new energy auto industry and promote green development through structural optimization.

The new round of economic development is facing the constraints of traditional energy sources, especially oil energy. Countries around the world are intensifying their efforts to create new development momentum. As a developing country, China’s high external dependence on oil has brought security risks to economic security. What's more, the exhaust emissions from cars have aggravated environmental pollution.

The development of new energy vehicles is a strategic choice for countries to seize the strategic high ground of emerging markets, and is also a sign of the development of the "new economy" in the industrial sector. To achieve the emission reduction targets in our country, we must achieve “turning overtaking” in the field of new energy vehicles, and we must achieve technological breakthroughs at the most critical areas and surpass others. To achieve this historic mission, it is necessary to focus on superior forces to support development. The five measures proposed by the State Council's executive meeting to promote the development of new energy vehicles are essentially exerting both sides of supply and demand to push the new energy industry to a new level.

From the perspective of supply, the measures for this conference include promoting the establishment of collaborative research platforms and open and shared power battery innovation platforms for large and medium-sized enterprises, universities, research institutes, etc., making breakthroughs in key materials, battery systems, and strategic R&D innovations. High ground. At the same time, the executive meeting was deployed to upgrade the quality of new energy vehicles, such as improving access standards, strengthening quality and safety supervision, developing new energy vehicles and internet of things, strengthening the safety monitoring and dynamic inspection of new energy vehicles by manufacturing companies, and establishing punitive damages. And market withdrawal mechanisms. The purpose of these measures is to supply the market with new energy vehicles with high quality, high technological content, and high quality. It is fundamental to win the favor of consumers by occupying the market through technological innovation and quality and quality advantages.

From the perspective of demand, the measures for the deployment of the conference include the establishment of infrastructure support such as the construction of charging equipment, and policies for expanding the proportion of new energy vehicles in urban public transportation, taxis, sanitation, and logistics. In particular, the ratio of central government agencies, government agencies and public agencies that promote and apply cities for new energy vehicles to new energy vehicles accounts for more than 50% of the total number of vehicles that were updated that year, which is an increase of 20 percent from the original 30%. Some points, this provision will also play a traction role in the promotion and development of new energy vehicles. Because the government took the lead in the use of new energy vehicles in official vehicles, on the one hand, it played an exemplary role in saving energy. On the other hand, it is possible to stimulate production through consumption and form a good relationship between production, supply and sales.

From the perspective of the role of the government, it is proposed to improve the subsidy policy, supervise the implementation of the requirement that new-energy vehicles be restricted from purchasing, break local protection, and crack down on “defrauding” behavior. Establish a reasonable investment return mechanism and encourage social capital to enter service areas such as charging facilities construction and operation, vehicle leasing, and battery recycling. In order to develop new energy vehicles in China, we must draw on internationally mature and effective experiences to implement special subsidy policies, especially financial subsidies for R&D and residents' purchases. In this way, we can win the advantages of industrial development and seize the commanding heights of development in the "curve passing" strategy.

Premier Li Keqiang emphasized on many occasions that the promotion of the industry to the mid-to-high end can not only expand demand, but also innovate supply, and increase the kinetic energy of sustained economic growth. This time the State Council executive meeting, Premier Li Keqiang once again put forward: “We are currently at the turning point of the transformation of old and new kinetic energy. As long as the 'new economy' grows stronger and nurtures 'new kinetic energy', China’s economy will not only be 'Yanming Huamingyi Village'. This is a full expression of Prime Minister Li Keqiang's high hopes for the new energy auto industry in the new economic form, as well as a consistent set of control ideas and measures.

We believe that the implementation of the decision-making and deployment of the executive meeting of the State Council from both sides of supply and demand will surely promote new energy vehicles to realize “turning overtaking” and promote new economic growth and energy transformation.

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