China punishes NEV manufacturers for fraudulent subsidy claims

Chinese Finance Minister Xiao Jie speaks at a press conference on Tuesday.[Photo: Xinhua]

China has punished a number of new-energy vehicle (NEV) manufacturers for fraudulently claiming subsidies, Finance Minister Xiao Jie said Tuesday.

"The combined amount of retrieved subsidies and penalties imposed on companies involved is about 2.3 billion yuan (about 333.5 million U.S. dollars)," Xiao told a press conference on the sidelines of the national legislature annual session.

"Problematic NEV models will no longer get subsidies, and companies involved in cheating are rectifying their problems," Xiao said.

"To prevent market disruptions, China has adjusted subsidy policies by lowering the amount, setting upper limits and raising market access standards," he said.