Fresh measures to fuel new energy vehicle sector

Employees work at an auto production facility in Jinhua, Zhejiang province, in April 2024. (HU XIAOFEI/FOR CHINA DAILY)

China is set to roll out a series of targeted measures to fuel growth in its new energy vehicle sector, as part of broader efforts to stabilize key industries and drive economic growth, said the country's top industry regulator on Tuesday.

"With domestic competition intensifying and international trade barriers rising, we will implement more precise measures to sustain the NEV industry's growth momentum, particularly focusing on accelerating breakthroughs in crucial technologies such as new system batteries," said Zhang Yunming, vice-minister of the Ministry of Industry and Information Technology, during a State Council news briefing.

New system batteries, which incorporate cutting-edge solidstate materials, offer significant improvements in energy density while dramatically enhancing both safety and stability. This advancement is being closely watched by countries around the world, positioning it as a key battleground in the global race for next-generation vehicle supremacy, industry experts said.

"The MIIT will advance national research and development initiatives to fast-track these breakthroughs and also introduce guidelines to promote battery-swapping infrastructure," Zhang added.

NEVs represent 40.9 percent of China's total new car sales, solidifying its position as the world's largest NEV market, Zhang said.

In addition, China dominates global battery production, supplying 70 percent of the world's battery materials and 60 percent of global power batteries.

Furthermore, China has developed the world's largest charging network, with 12.82 million charging piles and 4,443 battery-swapping stations already in operation. This expansive infrastructure supports the continued rise of NEVs, making China a leader in electric mobility.

Zhang's comments are part of a wider effort to ensure industrial stability. He also revealed that the government will "initiate new actions to stabilize growth across 10 key sectors", focusing on boosting support for industrial powerhouses and ensuring they contribute even more to the country's economic growth.

In this vein, the MIIT plans to establish a comprehensive investment mechanism for manufacturing, Zhang said.

In 2024, China's industrial output grew by 5.8 percent year-on-year, reinforcing the country's status as the world's largest manufacturing power for a 15th consecutive year.

The digital economy, which is intricately linked to manufacturing and industrial development, also saw impressive growth. Revenues from the digital industry increased by 5.4 percent in the first 11 months of 2024.

Tao Qing, head of the MIIT's operations, monitoring and coordination department, said that the next phase will focus on accelerating initiatives aimed at fostering high-quality development in the digital sector.

This includes ramping up policy support, ensuring resource availability, enhancing digital industry monitoring, and aligning industrial and financial policies more effectively, she said.