China to encourage compact cars: NDRC
By Guan Xiaomeng (Chinadaily.com.cn)
Updated: 2005-11-09 15:33

China will soon release a new policy encouraging the production and use of economy cars, pushing forward the drive to a conservation-minded and environmentally friendly society.

A board along Chang'an Avenue banning cars with emissions under 1.0 liter.

Liu Zhi, a National Development Reform Commission (NDRC) official, China's top planning agency, told an energy conference in Beijing that the new policy clarifies rules on compact cars and emissions standards.

The Xinhua News Agency reported Liu explained that compact cars refer to fuel-efficient and low-emissions cars. To be specific, a car body can be no more than 4 meters long and emissions no more than 1.4 liters while the engine power is no less than 45 kilowatts per liter. Prices of such cars are generally within the reach of ordinary consumers.

With people's living standards advancing, more and more intend to buy private cars. However, due to surging fuel prices and worsening pollution, encouraging the use of compact cars has been one of the top agendas of the central government.

Premier Wen Jiabao said in his speech on the establishment of conversation-minded society earlier this year that the government has pledged to waive limits on the use of fuel-efficient and emission-conservative cars. Several local governments have already taken measures to encourage compact cars.

According to the NDRC, the new policy will guide the car industrial readjustment considering safety, environmental protection, energy savings and private car purchasing. In this way, economy model cars will help reconcile the contradiction between the growing car industry and the worsening environment together with the dwindling energy supply.

Yet, there are still more than 80 cities nationwide that impose limits on compact cars in an effort to decrease traffic jams and maintain the status of cities Liu pointed out it is not reasonable because compact cars are not low-quality cars. As the car industry has advanced, many compact cars have become equipped with excellent technology and performance well.