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China’s Government: Five Automakers have Defrauded Governmental Subsidizes of1.01 billion RMB yuan

Release time:2016-09-12

Gasgoo (Shanghai, September 9)—China’s government disclosed five automakers of green vehicles defrauding governmental subsidizes of 1.01 billion RMB yuan on 8 September.

Ministry of Finance in China has carried out a special inspection on about 90 automakers producing alternative energy vehicles of 401,000 units including 133,000 units put into operation since early 2016.

Suzhou GEMSEA Bus Co. Ltd., has defrauded governmental subsidizes of about 260 million RMB yuan. Kinglong Lianhe Auto Co. Ltd., has defrauded governmental subsidizes of about 520 million RMB yuan.

Governmental subsidizes, which automakers of many types may be allowed to apply for, may not encourage development of companies. Subsidizes has led to improvement in technology, decreasing production cost, to some extents. Then, there should be adjustments to be made on policies of governmental subsidizes granted to automakers launching green vehicles.