China planning to stop local subsidies for electric cars: sources

Beijing

CHINA is planning to tell local governments to stop offering subsidies for electric cars and other new-energy vehicles to discourage protectionism and help rein in state expenditure, people familiar with the matter said.

The Ministry of Finance is working on a plan that would mandate authorities to phase out the incentives, the people said, asking not to be identified discussing government policy proposals that aren't yet public. The plan to streamline the payments may be implemented as early as next year, one of the people said. The ministry did not immediately respond to a fax requesting comments.