· Song Qiuling of the Ministry of Finance: Subsidies are short-acting and ultimately look at the "hand of the market"

Song Qiuling, deputy director of the Department of Economic Construction of the Ministry of Finance, said that the Ministry of Finance has established system support for the development of the new energy automobile industry, and has continuously increased support from the construction of tax standards and regulations and advanced manufacturing.
Practice has proved that new energy subsidies are effective for nurturing primary markets. But in the long run, companies are prone to policy dependence, lack of motivation and pressure for technology research and development and product upgrades, and the industry is prone to low levels of blindly repeating expansion. To make the new energy vehicle, a strategic emerging industry bigger and stronger, it is necessary to establish a market-oriented long-term mechanism and play a decisive role in the market.
From September 2nd to 4th, 2016 China Automotive Industry Development (TEDA) International Forum was held in Tianjin Binhai New Area. At the meeting, Song Qiuling, deputy director of the Department of Economic Construction of the Ministry of Finance, delivered a keynote speech on the support of the central government for the new energy automobile industry.

Song Qiuling, Deputy Director, Department of Economic Construction, Ministry of Finance

The central government has established a system to support new energy from scratch. Song Qiuling said that the central government has established a system support for the development of the new energy automobile industry. At the same time, the central government has continuously increased its support in the construction of tax standards and regulations and advanced manufacturing.
For example, the new energy vehicles are exempted from vehicle purchase tax and vehicle and vessel use tax, support a number of urgently needed basic standards and norms such as new energy vehicle product testing and safe operation monitoring systems, and accelerate the upgrading of industrial bases. Through the industrial transformation 2025 special funds , laying the foundation for the application of new technologies for power batteries and seals, and incorporating new energy vehicle power batteries into the scope of industrial strong machines.
With a series of power support, the new energy automobile industry has grown from small to large, with production and sales from less than 500 vehicles in 2009 to 300,000 vehicles in 2015. In 2016, it continued to maintain rapid growth momentum, and new energy from January to July. The sales volume of automobiles has reached 207,000, an increase of 122.8% over the same period of last year. China has become the world's largest producer and consumer of new energy vehicles.
Innovative policy ideas to explore a long-term mechanism for marketization<br> Song Qiuling further mentioned that the central government will adopt innovative ideas and explore long-term mechanisms for marketization of new energy vehicles. The original intention of consumption subsidies is to cultivate primary markets. Practice has proved that this method is effective, but long-term implementation of such a policy, enterprises are prone to policy dependence, lack of motivation and pressure for technology research and development and product upgrades, the industry is prone to low levels of blindly repeat expansion.
To make the new energy vehicle, a strategic emerging industry bigger and stronger, it is necessary to establish a market-oriented long-term mechanism and play a decisive role in the market. In accordance with the spirit of many important instructions from the Fifth Plenary Session of the 18th Central Committee and the State Council, the central government will highlight institutional innovations and establish sustainable market support policies. There are two main aspects to supporting policies.
On the one hand, it is to improve the subsidy policy and establish a selection mechanism and a phase-out mechanism.
First, to raise the technical threshold, strengthen the subsidy policy to promote technological progress, standardize the positive incentive effect of trustworthy enterprises, and maintain the overall stability of 2016, continuously improve the technical threshold of subsidies, so that products with advanced technology and high market acceptance are subsidized. Promote enterprises to accelerate technological innovation and promote superior enterprises to become bigger and stronger.
Second, the implementation of the subsidy policy will be degraded, forcing enterprises to accelerate technological progress, and increase the urgency of enterprises to increase technological progress and seek survival and development. At the beginning of 2015, the Ministry of Finance and the relevant departments announced the subsidies for subsidies for new energy vehicles in advance. The key now is to implement them.
The third is to improve the supervision and supervision system, further clarify the main body of responsibility, strengthen the management of financial funds, and block the loopholes of fraudulent compensation. If the management system is not perfect, the auditing is not strict, and the places where enterprises are cheated should be investigated for relevant responsibilities according to law.
On the other hand, we must adhere to the market orientation and adhere to the long-term mechanism of industrial development. China's new energy automobile industry has made great progress in its development, but it has not yet achieved a shift from policy-driven to market-driven. The endogenous development momentum is still insufficient. Exploring the establishment of a market-oriented long-term mechanism is both an internationally accepted practice and a medium- and long-term policy. Compared with direct financial subsidies, the market forces are used to motivate and force enterprises, and more resources are invested in product research and development to avoid some enterprises. For the policy transition dependence and deception, the next step is to actively cooperate with relevant departments to speed up the establishment of this system and continuously improve the new energy mechanism.

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