Authoritative Response on NEV Industry Development, Charging Facilities, and Purchase Tax Exemptions
Date : 2023-06-08
China Government Network
State Council policy briefings
In recent days, the Standing Committee of the State Council has studied policy measures to promote the quality development of the new energy automobile industry. On the morning of 21 June, the Press Office of the State Council held a routine State Council policy briefing on the promotion of high-quality development in the new energy automobile industry, with attention to the issue!
Q1
Q: ifWhat should be done to further strengthen policy support for the uneven development of new energy vehicles?
A:
One is improving the quality of product supply. Support the implementation of high-safe, all-climate-powered batteries, heat pump air conditioners, car heat management, etc., and upgrade technical standards for thermal out-of-control of power batteries to further enhance the low-temperature applicability and safety of new energy vehicles to meet consumer needs in high-cold areas.
The second is to scale up the focus areas. The organization of pilot projects in the public sector for a full-scale electric front of vehicles, the preparation and implementation of a heavy-calorage electricization programme, and the acceleration of the upgrading of the rates of urban public transport, logistics, rental, sanitation and heavy-carrying; and the ongoing development of new energy-car-towning activities to support enterprises in developing more advanced vehicle models, improving the recharge infrastructure system and further unleashing the consumption potential of rural areas.
The third is to strengthen safeguards. Development of a programme to promote the development of the lithium resource industry, acceleration of development of priority mineral projects, study of a new energy vehicle-powered battery recycling management approach, improvement of recycling systems, expansion of the landscape for the use of ladders and acceleration of the construction of a green, recycling ecosystem.
The fourth is to build a world-class brand. China’s auto brands are being developed on an ongoing basis to support the development of internationally competitive Chinese brands.
Q2
Q: How can we solve the problem of “finding” new energy vehicles, “getting into small areas” and “road recharge”?
A:
The Office’s Guidelines for the Further Construction of a System of High Quality Recharged Infrastructure (SIP) provide targeted solutions to issues such as the most powerful “problems” “to find” and “road charge” problems.
In response to the “problem” –
• Strengthening the coverage of the charging infrastructure network and building a well-structured urban charging network, with a focus on residential areas, office areas, business centres, industrial centres and leisure centres. Accelerate the achievement of effective coverage of charging infrastructure in rural areas suitable for the use of electric vehicles. The construction of recharge infrastructure in public areas, such as public parking lots, gas stations where conditions exist, tourist attractions, etc.
:: On the other hand, the creation of an information network platform with full access to various types of charging infrastructure and the timely release of public charging infrastructure settings and real-time usage through a variety of convenient channels such as the Internet Map Services platform.
For “difficult access” –
Actively promoting the construction of residential recharge infrastructure.
• First, the installation of the facility requires that the filling infrastructure for the fixed spaces should be fully installed at an accelerated pace in the established settlements; the construction requirements for the charging infrastructure should be strictly implemented in the newly constructed settlements to ensure that the fixed spaces are equipped with the required 100 per cent recharge infrastructure or set-aside installation conditions.
• Second, on coordination mechanisms, calls for city-based acceleration of the development of guidelines for the management of residential recharge infrastructure and the establishment of a “one-stop” coordination facilitation and complaint processing mechanism.
• Thirdly, in terms of security of service, encourage operators, such as charging operators, to be commissioned to provide integrated services for the construction, operation, maintenance, etc. of charging infrastructure; encourage the retrofitting of charging infrastructure to old sub-district infrastructure and synchronize the construction of distribution facilities.
For “road charge” –
• One is to build an easy and efficient inter-city charging network. (c) To accelerate the completion of the recharging infrastructure for the network between key cities to effectively meet the medium- and long-distance travel needs of electric vehicles; to expand the coverage of the network ‘ s national highway charging infrastructure and to optimize the location of the facility by encryption; and to promote the availability of scientificly adapted charging infrastructure for the main national road service and service stations.
• Second, the strengthening of charging services in highway service areas. The construction of new highway service areas should be synchronized with the construction of charging infrastructure and the acceleration of the recharging infrastructure of existing highway service areas, and additional facilities should, in principle, be equipped with high power charging technology. Moderate discharge of mobile charging infrastructure, such as in areas with larger traffic flows and during major holidays, to enhance the resilience of the charging network.
• Thirdly, the establishment of an interconnected network of urban urban communities charged. Strengthen integrated planning, synergistic construction of charging infrastructure and increase the accessibility of electric vehicles between urban clusters, urban circles and priority cities.
Q3
Q: What are the main aspects of the continuation and optimization of the new energy vehicle acquisition tax exemption policy?
A:
In accordance with the requirements of the Standing Committee of the State Council, this renewal and optimization includes, inter alia, these aspects:
The first was the extension of the new energy vehicle acquisition tax waiver from implementation until 31 December 2023 to 31 December 2027 for a four-year period. Of these, the vehicle acquisition tax was waived from 1 January 2024 to 31 December 2025, i.e. for the first two years, and the vehicle acquisition tax was reduced by half between 1 January 2026 and 31 December 2027, the latter by half. The extension policy will bring the total volume of vehicle acquisition tax relief to $52 billion between 2024 and 2027.
The second is the establishment of a reduction and reduction limit on vehicle purchases tax for new energy. A duty-free limit of $30,000 has been set for new energy vehicles whose acquisition dates are from 1 January 2024 to 31 December 2025 and a tax-free limit of $15,000 for new energy vehicles whose acquisition dates are from 1 January 2026 to 31 December 2027, which are reduced by half. The two policy phases set different quotas, taking into account, inter alia, the fact that the domestic market for new energy vehicles has become markedly fragmented, support for the technological advancement and upgrading of new energy vehicles, and imbalances in the development of new energy vehicles and commercial vehicles. In essence, vehicles with sales prices of $0.3 million and below $0.3 million are not affected by the limit, and vehicles above $0.3 million are subject to tax relief only on the basis of the maximum amount, and over $0.3 million are subject to vehicle acquisition tax at the established rate. According to data for 2022, new energy vehicle production of $300,000 and less is estimated at 87 per cent. The setting of this limit has little overall impact on the vast number of consumers and markets that purchase new sources of energy for motor vehicles.
Thirdly, the Ministry of Industry and Information Technology has been able to optimize the technical requirements of the vehicle acquisition tax reduction policy in the light of technological advances in new energy vehicles, the development of standard systems and changes in vehicle patterns, and to direct enterprises to accelerate technological development and upgrading.
Q4
Q: How effectively to advance the recycling of powered batteries?
A:
Recycle new energy car-powered batteries is of great importance for stabilizing the supply of resources, protecting the environment and achieving healthy and sustainable industrial development.
In recent years, the Ministry of Industry and Communications has been actively promoting the recycling of power batteries with the development of policy documents such as the Interim Scheme for the Management of the Recycle of New Energy Automobile Powered Batteries, the Guidance for the Construction and Operation of Recycle Service Points, and the issuance of national standards such as specifications for power battery products, code codes, decomposition guidelines and residual energy testing. Promotion of the national harmonization of power cell codes and the establishment of a national traceability management platform and a full-life traceability monitoring mechanism to guide car-producing enterprises, step-use and battery-producing enterprises in building more than 10,000 recycling service points in the country, covering 327 municipalities in 31 provinces. At the same time, we have fostered the selection of 84 integrated industrial utility firms to develop integrated utilization capabilities that can meet current and future needs.
The recycling of powered batteries is a more complex system project. A number of efforts need to be further strengthened:
The first is to strengthen industry regulation. The development of the New Energy Automotive Battery Recycle Management Approach needs to be expedited. Standard systems for power batteries need to be further refined to accelerate the development of standards such as universal requirements for power cell recycling.
Second is the enhancement of combined utilization capabilities. The continued implementation of integrated industrial management of used and end-of-life power batteries, the development of integrated use backbone enterprises and the strengthening of dynamic “in and out” management and the provision of advanced integrated utilization capabilities.
Thirdly, there is enhanced support for technological innovation. Increased collaboration in productive research and development, and efforts to break through key technologies such as non-destructive detection of decommissioned batteries and high-value utilization of resources. A catalogue of state-of-the-art technology equipment is published, advanced processes are promoted and the level of integrated resource use is continuously upgraded.
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