Provisions for the Administration of Investment in the Automotive Industry

(Promulgated by the National Development and Reform Commission on December 10, 2018 and effective as of January 10, 2019.)

Order of the NDRC [2018] No.22

Following approval by the State Council, new Sino-foreign equity joint venture sedan producer projects and new pure electric passenger vehicle producer projects (including cross-type pure electric passenger vehicle production of existing automotive enterprises) in the List of Investment Projects Subject to Government Check and Approval (2016 Edition) and remaining automotive investment projects subject to check and approval by provincial-level governments shall no longer be subject to administration by means of check and approval, and shall hereinafter be subject to administration by means of record filing.

Part One: General Provisions

Article 1:     These Provisions have been formulated pursuant to relevant laws and regulations such as the Administrative Permission Law and the Regulations for the Administration of the Check and Approval and Record Filing of Enterprise Investment Projects in order to study in-depth and thoroughly implement Xi Jinping's socialist thought with Chinese characteristics in the new age and the spirit of the 19th National Congress of the Communist Party of China, adapt to the new circumstance of reform and opening in the automotive industry, improve the administration of investment in the automotive industry and promote the high quality development of the automotive industry.

Article 2:    Improving the access criteria for automotive industry investment projects, strengthening during-the-event and post-event administration so as to regulate the investment acts of market entities and guiding private capital toward reasonable investment orientations. Stringently controlling new traditional fossil fuel-powered vehicle production capacity, actively promoting the healthy and orderly development of alternative energy vehicles and endeavoring to erect a system for the innovative development of smart vehicles.

Article 3:    Resolutely allowing the market to play a decisive role in the allocation of automotive industry resources and better leveraging government functions; adhering to the simplification of governance, delegation of authority, combining delegation and governance, and optimization of services; adhering to opening, cooperation and fair competition; and adhering to the principles of whoever invests bears responsibility, whoever approves exercises oversight and whoever is in charge exercises oversight.

Article 4:    These Provisions shall govern the automotive investment projects in China of various types of market entities.

Article 5:    Automotive investment projects are divided into the following types:

(1)    Assembled vehicle investment projects are, based on the motive power system, divided into fossil fuel-powered vehicle and pure electric vehicle investment projects, including the two product categories of passenger vehicles and commercial vehicles. The term “fossil fuel-powered vehicle investment project” means a vehicle investment project wherein an engine provides the motive force (including alternative fuel vehicles), including investment projects for traditional fossil fuel-powered vehicles, ordinary hybrid vehicles and plug-in hybrid vehicles. The term “pure electric vehicle investment project” means a vehicle investment project wherein an electric motor provides the motive force, including investment projects for pure electric vehicles (including extended-range electric vehicles) and fuel cell vehicles. Smart vehicle investment projects are administered respectively as either fossil fuel-powered vehicle or pure electric vehicle investment projects depending on their motive power system.

(2)    Other investment projects include vehicle engine, power battery, fuel cell, autobody assembly and other such automotive part and component, special-purpose vehicle, trailer, as well as power battery recovery and utilization, and automotive part and component refurbishing investment projects.

Article 6:    Both assembled vehicle and other investment projects shall be subject to administration by record filing by the local development and reform department. Assembled vehicle investment projects shall be subject to record filing by the provincial level development and reform department.

Part Two: Investment Orientation

Article 7:    The distribution of fossil fuel-powered vehicle production capacity shall be optimized, and its concentration in provinces where production capacity is fully utilized, the industry foundation is sound, complementary systems are good and competitive advantages are prominent shall be promoted. Provinces and enterprises whose vehicle production capacity utilization ratio is low shall increase fund outlay and merger and restructuring efforts, accelerate technological progress, eliminate obsolete production capacity and enhance market competitiveness.

Article 8:    The distribution of the alternative energy vehicle industry shall be planned in a rational manner. Existing fossil fuel-powered vehicle enterprises shall increase research and development outlays, adjust their product structure, and develop alternative energy vehicles, such as pure electric vehicles, plug-in hybrid vehicles and fuel cell vehicles. The administration of investment projects for which new pure electric vehicle enterprises are to be constructed shall be made stricter, and blind distribution and low-quality duplicated construction shall be guarded against. New pure electric vehicle enterprise projects and existing enterprises' pure electric vehicle production capacity expansion projects shall be constructed in provinces where the industrial base is sound, the elements of innovation comprehensive, complementary capabilities strong and room for growth expansive, as well as in key air pollution prevention and treatment zones. The concentration of new production capacity in provinces where consumer demand for alternative energy vehicles is strong and the potential for replacing fossil fuel-powered vehicles is relatively great shall be put forward.

Article 9:    Focus shall be placed on the key points of automotive industry development, and the promotion of alternative energy vehicles, smart vehicles, energy efficient vehicles and key parts and components, advanced manufacturing and assembly, power battery recovery and utilization technology, automotive part and component refurbishing technology, and assembly research and industrial application thereof shall be accelerated, mainly including:

(1)    For the alternative energy vehicle sector, placing emphasis on developing non-metal composite material, high-strength light alloy, high-strength steel and other such light material autobodies, parts, components and assembled vehicles, full featured, high performance vehicle control systems, high efficiency drive systems, advanced vehicle power batteries and fuel cell products, and manufacturing and testing technology and specialized equipment for vehicle power batteries;

(2)    For the smart vehicle sector, placing emphasis on developing complex environment sensing, new smart terminals, onboard smart computing platforms and other such critical generic technologies, onboard sensors, central processors, specialized chips, operating systems, wireless communication equipment and other such key parts, components and systems, and promoting the development of technology research and development capabilities, testing and assessment capabilities, civil-military integration capacity and safety assurance capabilities;

(3)    For the fuel efficient vehicle sector, placing emphasis on developing high efficiency engines, advanced automatic transmissions, hybrid power systems and other such fuel efficient technologies and products;

(4)    For the power battery recovery and utilization sector, placing emphasis on developing high efficiency power battery recovery and utilization technologies and specialized equipment, and promoting the development of cascade utilization, recycling and disposal capabilities; and

(5)    For the automotive part and component refurbishing sector, placing emphasis on developing high valued-added part and component refurbishing technologies and processes, and promoting the development of used part and component recovery and refurbished product quality control capabilities etc.

Article 10:       The industry organization and structure shall be adjusted and enterprise competitiveness enhanced. Enterprise mergers, restructurings and strategic cooperation, joint research and development of products and joint organization of production through means such as equity investment and production capacity cooperation shall be promoted in order to enhance industry concentration. Mixed ownership reform shall be launched, strong alliances between state-owned automotive enterprises and other types of enterprises promoted, and world class automotive enterprise groups established. The competitive resources of the production, academic, research and use sectors shall be integrated and the establishment of industry alliances and industry consortiums by backbone automotive industry enterprises promoted. The opening of part and component supply systems by automotive enterprises, and the leveraging of their respective strengths to jointly create platform-based and professional part and component enterprise groups that are internationally competitive shall be promoted.

Part Three: Fossil fuel-powered Assembled Vehicle Investment Projects

Article 11:       The construction of the following fossil fuel-powered vehicle investment projects (excepting investment projects the resulting products of which will not be sold in China) are prohibited:

(1)    new independent fossil fuel-powered vehicle enterprises;

(2)    construction by existing automotive enterprises of fossil fuel-powered vehicle production capacity that crosses passenger vehicle and commercial vehicle categories;

(3)    relocation of entire existing fossil fuel-powered vehicle enterprises to other provinces (except projects included in state-level regional development plans or in which the equity structure of the enterprise will not change); and

(4)    investments by fossil fuel-powered vehicle enterprises that have been the subject of a special public announcement by the industry administrative department (except investment projects in which the enterprise's existing shareholders invest or convert the enterprise into a non-independent legal person).

Article 12:       An investment project for the production capacity expansion of fossil fuel-powered vehicles of an existing automotive enterprise shall satisfy the following conditions:

(1)    its vehicle production capacity utilization ratios were greater than the average industry level for the same product category (passenger vehicle or commercial vehicle) for both of the previous two years;

(2)    the percentages of its production volume accounted for by alternative energy vehicles were greater than the average industry level for both of the previous two years;

(3)    its research and development expenses were greater than 3% of its revenues from its main business for both of the previous two years;

(4)    its products are internationally competitive; and

(5)    the vehicle production capacity utilization ratios in the province where the project is to be located were greater than the average industry level for the same product category for both of the previous two years, and that province does not have a fossil fuel-powered vehicle enterprise, producing the same category of product, that has been subject to a special public announcement by the industry administrative department.

Article 13:       For an investment project for the capacity expansion of fossil fuel-powered passenger vehicles, in addition to complying with Article 12 hereof, the enterprise's average fuel consumption shall satisfy the requirements of state standards and relevant provisions, and if such a capacity expansion investment project is to be newly constructed elsewhere, its construction scale shall not be less than 150,000 vehicles and the enterprise's total production volume the previous year may not have been less than 300,000 vehicles.

Article 14:       If an existing automotive enterprise is to construct a production capacity investment project for plug-in hybrid vehicles, it may be exempted from the constraints of Item (2) and (5) of Article 12 hereof.

Article 15:       If an existing automotive enterprise merges with another independent automotive enterprise producing the same category of products and converts it into a non-independent automotive enterprise without increasing its existing production capacity, it may be exempted from the constraints of Articles 12 and 13 hereof.

Article 16:       The expansion of fossil fuel-powered vehicle production capacity may be exempted from the constraints of Item (5) of Article 12 hereof if:

(1)    without increasing the automotive enterprise group's total production capacity, an independent automotive enterprise belonging to the group constructs a production capacity expansion project for fossil fuel-powered vehicles by reallocating its internal production capacity; or

(2)    without increasing the total production capacity of the province where it is located, an independent automotive enterprise constructs a fossil fuel-powered vehicle production capacity expansion project by means of a merger and restructuring.

Part Four: Pure Electric Assembled Vehicle Investment Projects

Article 17:       The province where an investment project for which a new independent pure electric vehicle enterprise is to be constructed (including construction of pure electric vehicle production capacity across passenger vehicle and commercial vehicle categories by an existing automotive enterprise) is located shall satisfy the following conditions:

(1)    its vehicle production capacity utilization ratios were greater than the average industry level for the same product category for both of the previous two years; and

(2)    existing investment projects for which new independent pure electric vehicle enterprises producing the same category of products are constructed have all been completed and the annual production volume has attained the construction scale.

Article 18:       The enterprise with legal personality of an investment project for which a new independent pure electric vehicle enterprise is to be constructed shall satisfy the following conditions:

(1)    it has established a product research and development organization, has a professional research and development team and has pure electric vehicle concept design and system and structure design experience and capabilities; research and development capabilities for vehicle control systems, vehicle power battery systems, vehicle integration and lightening, etc. and the corresponding testing and certification capabilities; research and development capabilities for autobody and chassis manufacture, vehicle power battery system integration, vehicle assembly, etc. and the corresponding trial manufacturing capabilities; and the major technical indicators of the products it develops attain an industry leading level;

(2)    it has the invention patents for, and the intellectual property rights in, the core technologies for its pure electric vehicles, and the same have been granted or confirmed; and

(3)    it provides solid after-sales service, and undertakes to take out insurance or have a relevant enterprise provide security for the quality of the products it sells within the first five years after the construction and commencement of production of the project. The average annual net assets during the previous three years of the insurance company or enterprise providing security shall be consistent with the amount derived from the sale of the new enterprise's products during the guarantee period.

Article 19:       The shareholders of the enterprise with legal personality of an investment project for which a new independent pure electric vehicle enterprise is to be constructed shall satisfy the following conditions:

(1)    they may not withdraw their share capital until the project is completed and its annual production volume attains the construction scale;

(2)    if a shareholder has relatively strong domination in key parts and components, it shall have the intellectual property rights in and the capacity to produce the vehicle control systems, drive motor, vehicle power batteries and other such key parts and components;

(3)    a major legal person shareholder shall satisfy the following conditions:

(i)     accounting for more than one-third of the equity;

(ii)    existing investment projects for which new independent pure electric vehicle enterprises are constructed that it controls has been completed, their annual production volume has attained the construction scale and it does not have construction projects that violate provisions; and

(iii)   its own funds and financing capacity are sufficient to satisfy the construction and operating needs of the project;

(4)    a major legal person shareholder shall additionally satisfy one of the following conditions:

(i)     if an assembled vehicle enterprise is a major legal person shareholder, its vehicle production capacity utilization ratios and the percentages of its production volume accounted for by alternative energy vehicles for both of the previous two years were greater than the average industry level, in the case of a fossil fuel-powered vehicle enterprise, or its production volume during the last year attained its construction scale, in the case of a pure electric vehicle enterprise;

(ii)   if an automotive part and component enterprise is a major legal person shareholder, its complementary installation volume for vehicle control systems, drive motors or vehicle power batteries for both of the previous two years totaled more than 100,000 sets; or

(iii)   if a design research and development enterprise, foreign enterprise or other such market entity is a major legal person shareholder and it researches, develops and has pure electric vehicle products in which it owns the intellectual property, the registered quantity of its aggregate domestic and foreign market sales for the last two years of pure electric passenger vehicles was greater than 30,000 or of pure electric commercial vehicles was greater than 3,000, or its aggregate sales turnover of pure electric vehicle products for the last two years were greater than Rmb3 billion.

Article 20:       An investment project for which a new independent pure electric vehicle enterprise is to be constructed shall satisfy the following conditions:

(1)    the construction details shall include:

(i)     continuing pure electric vehicle research and development capabilities and, on the basis of the existing research and development organization, the establishment of a product information database, enhancement of capabilities such as product concept design, trial manufacturing and trial assembly, testing and vehicle operating state monitoring, and the main technical indicators of the products it develops attaining an industry leading level;

(ii)    construction scale: no less than 100,000 vehicles, in the case of pure electric passenger vehicles, or no less than 5,000 vehicles, in the case of pure electric commercial vehicles;

(iii)   vehicle production process and equipment for autobody molding, coating, final assembly, etc., as well as production capacity and consistency assurance capabilities for vehicle power battery systems and other such key components; and

(iv)   management systems for assuring the quality of, the market sale of, after-sales service for, and vehicle battery recovery and utilization for, pure electric vehicle products; and

(2)    after the construction and commencement of production of the project, only producing pure electric vehicle products under self-owned registered trademarks and brands.

Article 21:       Where an existing automotive enterprise is to expand its production capacity for pure electric vehicles in the same product category, its vehicle production capacity utilization ratios shall be greater than the average industry level for both of the previous two years, in the case of a fossil fuel-powered vehicle enterprise, or its production volume for pure electric vehicles for the previous year shall have attained the construction scale, in the case of a pure electric vehicle enterprise; and the major technical indicators of the products it proposes to produce, such as energy consumption and range, shall attain an industry leading level.

Article 22:       Where an existing automotive enterprise is to construct new production capacity for pure electric vehicles in the same product category elsewhere, in addition to complying with Article 21 hereof, the construction scale of the project shall be: not less than 100,000 vehicles, in the case of passenger vehicles, and not less than 5,000 vehicles, in the case of commercial vehicles.

Part Five: Other Investment Projects

Article 23:       The enterprise with legal personality of an investment project for which a new automotive engine enterprise is to be constructed shall have relatively strong research and development capabilities, and the major technical indicators of the products it develops shall attain an industry leading level. For an investment project for which a new automotive engine enterprise is to be constructed or an investment project of an existing enterprise for a new engine product, the engine product shall satisfy the pertinent requirements of the most recent state vehicle emission standards.

Article 24:       An investment project for which a new vehicle battery unit/system enterprise is to be constructed shall satisfy the following conditions:

(1)    the enterprise with legal personality shall have established a research and development organization for vehicle power battery products, have a professional research and development team, and have the relevant research and development experience; unit enterprises shall have the capabilities for researching and developing core technologies, such as those relating to materials, and testing and certification capabilities, and system enterprises shall have the capabilities for researching and developing core technologies, such as those relating to battery management and heat management systems, and testing and certification capabilities;

(2)    the proposed facilities shall have a relatively high intelligence level and be able to satisfy smart manufacturing requirements in terms of plant layout, production line design, smart equipment outlays, digital information management, as well as production environment control, process control, etc.; the production process of a unit project shall cover electrode preparation, formation, unit assembly and other such processes, and system projects shall have capabilities such as modular production, and system assembly and testing;

(3)    the major technical indicators of the products shall attain an industry leading level; and

(4)    the enterprise with legal personality shall bear the producer liability for vehicle power battery recovery and utilization, and a complementary vehicle power battery recovery and utilization management system shall be established for the project.

Article 25:       For a production capacity expansion project of an existing vehicle power battery enterprise, in addition to complying with Article 24 hereof, the enterprise's vehicle power battery production capacity utilization ratios for both of the previous two years shall not be less than 80%.

Article 26:       A new vehicle fuel cell stack/system investment project shall satisfy the following conditions:

(1)    the enterprise with legal personality shall have established a research and development organization for vehicle fuel cell products, have a professional research and development team, and have the relevant research and development experience; fuel cell stack enterprises shall have the capabilities for researching and developing core technologies, such as for bipolar plates, membrane electrodes and other such key components, and testing and certification capabilities, and fuel cell system enterprises shall have the capabilities for researching and developing core technologies, such as those for stack control systems, and testing and certification capabilities;

(2)    production capacity for bipolar plates, membrane electrodes and other such key components, as well as for stack assembly shall be constructed for fuel cell stack projects; production capacity for stack control systems and other such key components, as well as for stack system assembly shall be constructed for fuel cell system projects; and

(3)    the major technical indicators of the products shall attain an industry leading level.

Article 27:       Relevant requirements in respect of autobody assembly investment projects:

(1)    for an investment project for which a new independent autobody assembly enterprise is to be constructed, the enterprise with legal personality shall establish a product research and development organization, have a professional research and development team, have the relevant research and development experience and have the capabilities for researching and developing core technologies for making light vehicle bodies, such as for new materials and new processes, and testing and certification capabilities; the project shall use advanced technologies and processes, and production capacity for the molding and assembly, etc. of autobodies applying carbon fiber and other such non-metal composite materials, light alloys of aluminum, etc. or other such light materials shall be built; and

(2)    investment projects for which new independent autobody assembly enterprises are to be constructed applying ordinary steel sheets and other such traditional materials, and using stamping and welding and other such traditional processes to manufacture autobodies are prohibited.

Article 28:       Relevant requirements in respect of special-purpose vehicle and trailer investment projects:

(1)    for an investment project for which a new special-purpose vehicle or trailer enterprise is to be constructed, the enterprise with legal personality shall establish a product research and development organization, have a professional research and development team, have the relevant research and development experience and have the capabilities for researching and developing the special purpose assemblages, and testing and certification capabilities;

(2)    investment projects for which new ordinary transport-type special-purpose vehicle (such as stake trucks, low flat-bed trucks, dump trucks and ordinary box trucks) enterprises or new ordinary transport-type trailer enterprises are to be constructed are prohibited; and

(3)    special-purpose vehicle enterprises may not build production capacity for various vehicle chassis and assembled vehicles, with the exception of self-manufactured special vehicle chassis for own use.

Article 29:       An investment project for vehicle power battery recovery, cascade utilization, recycling and disposal, etc. shall comply with the requirements of relevant state laws, regulations and standards, use advanced applicable processes, technologies and equipment, and realize environmentally friendly treatment of non-usable residue.

Article 30:       An automotive part and component refurbishing investment project shall comply with the requirements of relevant state laws, regulations and standards, the enterprise shall have the appropriate capacity to recover used parts, have the necessary disassembly, washing, manufacturing, assembly and quality testing technologies and equipment, use advanced technologies and processes, establish sound refurbishing quality control standards and production specifications, and ensure that its refurbished products are equal to the original new products in performance and quality.

Part Six: Administration of Projects by Means of Record Filing

Article 31:       Provincial-level development and reform departments shall formulate and publish record filing service guidelines for automotive investment projects according to the Regulations for the Administration of the Check and Approval, and Record Filing of Enterprise Investment Projects and the Measures for the Administration of the Check and Approval, and Record Filing of Enterprise Investment Projects, specifying the information required for project record filing and the conditions, procedure, etc. for carrying out the same.

Article 32:       The information on an automotive investment project submitted by an enterprise shall include the following:

(1)    basic particulars of the enterprise with legal personality, its shareholder structure, etc.;

(2)    particulars of the proposed project, including the name of the project, total investment, location, construction scale and details of the construction;

(3)    an account of how the project complies with these Provisions;

(4)    a statement to the effect that the project complies with relevant laws and regulations; and

(5)    other information that relevant provisions require be submitted.

Article 33:       If the local development and reform department discovers that an enterprise has used illegitimate means to achieve record filing, such as breaking up the project into smaller ones, withholding relevant information or providing false application information, it shall order that the same be rectified within a specified period of time. If a major change to the information of a project that has been placed on the record occurs, the enterprise shall inform the record filing authority thereof in a timely manner.

Article 34:       The project legal person shall make its project filing by means of the national online investment project approval and regulation platform, apply for a unique project code, truthfully submit basic information pertaining to the carrying out of the construction, such as on commencement of construction of the project, construction progress and completion of the project and be liable for the truthfulness, lawfulness and completeness of the project information.

Article 35:       A local development and reform department shall stringently implement provisions such as the Regulations for the Administration of the Check and Approval, and Record Filing of Enterprise Investment Projects and submit project information to the National Development and Reform Commission by means of the national online investment project approval and regulation platform in a timely manner.

Article 36:       A provincial-level development and reform department shall compile statistics on and analyze automotive investment projects on a quarterly basis. Where information is incomplete, it shall require the enterprise to provide the missing relevant information in a timely manner; where the construction details and the project information are inconsistent, it shall order the enterprise to rectify the matter within a specified period of time; and where the enterprise fails to carry out rectification within the specified period of time, it shall impose penalties in accordance with the law, place the enterprise on the delinquent enterprise list, and make the same available to the public by including it on the national integrity information sharing platform and related public announcement systems.

Article 37:       The National Development and Reform Commission shall establish an irregular random check system, publicly announce automotive investment projects that are not in compliance with provisions, place them on the integrity record of project irregularities and include them on the national integrity information sharing platform. It shall additionally order the local development and reform departments and the enterprises to carry out rectification.

Part Seven: Collaborative Oversight

Article 38:       No government at any level may disrupt fair market competition or provide preferential conditions in terms of taxation, funding, land, etc. to automotive investment projects in violation of provisions.

Article 39:       Where a major automotive investment project involving new construction, merger and restructuring or a change in equity has industry security implications, the relevant department shall carry out an anti-monopoly review in accordance with provisions in a timely manner. If foreign investment is involved, a security review shall additionally be carried out in accordance with provisions.

Article 40:       The development and reform departments at the various levels shall establish sound collaborative oversight and joint law enforcement mechanisms with the planning, land, environmental protection, work safety, finance, industry departments, etc. so as to increase oversight and law enforcement efficiency.

Article 41:       Where a development and reform department at any level ascertains in the course of oversight that an automotive investment project is in violation of provisions, the record filing department shall revoke the record filing thereof and copy the same to relevant departments for further handling by the planning, land, environmental protection, work safety, finance, industry departments, etc. With respect to an entity that has been found as being seriously delinquent, joint discipline shall be imposed. If a law has been violated, penalties shall be imposed in accordance with the law.

Article 42:       Based on the principle of whoever approves exercises oversight and whoever is in charge exercises oversight, development and reform departments at every level shall establish and improve monitoring responsibility systems and liability pursuit systems, and strengthen during-the-event and post-event oversight of automotive investment projects. With respect to a unit that fails to perform its oversight duties in accordance with the law or is lax in its monitoring, it shall be called in for a lecture, a notice about it shall be circulated and it shall be ordered to rectify the matter within a specified period of time. If it fails to rectify within the specified period of time, its power of record filing shall be suspended until rectification is completed. With respect to the official in charge and other directly responsible persons, they shall be brought to account and dealt with in accordance with laws and regulations.

Part Eight: Production Capacity Monitoring and Early Warning

Article 43:       Vehicle production capacity monitoring and statistics:

(1)    an assembled vehicle or key part and component enterprise shall report information on its relevant product production volume for the previous year, completed production capacity, production capacity under construction and planned production capacity to the provincial-level development and reform department, with a copy sent to the National Development and Reform Commission, by the end of January each year;

(2)    a provincial-level development and reform department shall, in a timely manner, apprise itself of the details of automotive product production and changes in production capacity in its jurisdiction, and collate the information on production volume and production capacity in its jurisdiction during the preceding year and submit it to the National Development and Reform Commission by the end of March each year.

Article 44:       Vehicle production capacity publication and early warning:

(1)    the National Development and Reform Commission shall establish a vehicle production capacity check and information publication work mechanism, publish information on changes in vehicle production capacity in a timely manner, strengthen production capacity early warning, guide enterprises in rationally investing and provide services for the local administration of automotive investment projects;

(2)    a development and reform department at the provincial level shall improve its checking system for vehicle production capacity in its jurisdiction, study and determine changes in production capacity utilization ratio, strengthen its guidance and monitoring of enterprises, effectively respond to and mitigate overcapacity risks in a timely manner and continuously enhance the production capacity utilization level.

Part Nine: Miscellaneous Matters

Article 45:       With respect to matters such as a change in the construction details or change in the major shareholders of an automotive investment project that has already been examined/checked and approved, the same shall be reported to the original project examination/check and approval department for handling.

Article 46:       These Provisions shall be revised as appropriate by the National Development and Reform Commission based on the actual circumstances.

Article 47:       The National Development and Reform Commission is in charge of interpreting these Provisions.

Article 48:       These Provisions shall be effective as of January 10, 2019. Where the special administrative measures for access by foreign investors contain dedicated provisions, such provisions shall apply. Investment projects for which new independent pure electric vehicle enterprises are to be constructed officially accepted prior to the dedicated campaign for clearing and making compliant alternative energy vehicle enterprises shall be studied and dealt with by the provincial-level development and reform departments with reference to the existing provisions before the implementation hereof. In the event of a discrepancy between these Provisions and other relevant documents, matters shall be handled in accordance herewith.