The China Insurance Regulatory Commission said in late 2015 that insurance companies would not cover accidents involving private cars that offer car-hailing services.

Li Xuejun, an Uber driver in Beijing, said he feels relieved that the government is showing a positive attitude toward his job, which brings him an income of 300 yuan to 400 yuan a day.

He said he considered changing his job when the transport authorities in the capital increased checks in January, during which law enforcement officials appeared more often, especially at railway stations and airports.

The regulation also advocates the use of new-energy vehicles and building charging infrastructure, in the latest of a slew of favorable policies for the industry, as part of China's green consumption campaign.

It urges public institutions to build parking lots for new-energy vehicles, encourages private companies to join in the construction of charging poles and demands that new vehicles should account for at least 30 percent of new vehicles purchased by public institutions in 2016.