Thecover.cn:

The new energy vehicle (NEV) industry has seen major growth in China, but is also becoming increasingly competitive. How is China's NEV industry going in general? What measures will be taken to further support its development? Thanks.  

Xiao Yaqing:

Thank you for your questions. NEVs are the main driver for the green development, transformation, and upgrading of the global vehicle industry, and also a strategic choice for China's vehicle industrial development. In recent years, the MIIT and China's other relative departments jointly formulated approximately 60-plus supportive policies and measures. Relying on joint efforts made by local governments, departments, and enterprises, our country's NEV industry has made substantial breakthroughs in basic materials, parts, motor, electronic control, battery, and whole vehicle production. China's NEV production and sales volume has ranked first in the world for six consecutive years, and more than 5.5 million vehicles have been accumulatively promoted. 

Last year, the State Council unveiled a development plan for the NEV industry for the 2021-2035 period, making clear the direction of development and enhancing confidence in the industry, among enterprises, and with investors. Last year, the global NEV sales decreased, but our performance remained fairly good, with a high growth rate of 10.9%, and will continue its upward trend. However, we are also keenly aware that the industry is still at a crucial stage where we must work harder to overcome difficulties. The NEV market is very competitive itself and people are optimistic about the future of the industry. From technology, quality, and consumer perspectives, some problems still need to be dealt with.  

Next, efforts will mainly be made in the following aspects. First, improve quality. Based on early development, we will raise standards and strengthen quality supervision according to the needs of the market and consumer experience. Enterprises should continue boosting manufacturing levels to improve quality.  

Second, promote integration. People understand the concepts of "new energy" and "vehicle." However, NEVs incorporate many technologies. The development of NEVs also needs the integration of smart roads, communication networks, and cloud technologies to ensure a satisfactory experience. The further integration of electrification and intelligent networks will help develop new functions to better meet the needs of consumers. 

Third, optimize the environment. The development of NEVs is inseparable from the layout of charging stations. We need to improve environmental protection measures concerning charging and parking. Meanwhile, we will strengthen the electrification of public transport.  

Finally, expand opening up. We have fully lifted restrictions on foreign investment in the NEV industry. On that basis, we will be open for technological innovation, international trade, and even the formulation of standards and regulations, which will inject new momentum into the development of the NEV industry. Thanks.