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4.106. In December 2018, the authorities took new measures to further facilitate certain administrative procedures on investments in the automotive sector. (...) The regulations also set strict control on new investments that aim to increase manufacturing capacity of traditional oil-fuelled cars, in line with the country's efforts to promote [New Energy Vehicles] NEVs and the sustainable development of the automotive industry.

4.107. The Automobile Mid- and Long-term Development Plan (launched in 2017) is the main strategic plan to promote the auto industry. The Plan aims to, inter alia, improve the innovation system and promote the development of key areas, such as [New Energy Vehicles] NEVs, smart network cars, and energy saving cars. (...).

4.109. In October 2020, the Government outlined a development plan for the [New Energy Vehicles] NEV industry, aiming to accelerate technological innovation and infrastructure construction. Under the plan, the average power consumption of new purely electric passenger cars shall be reduced to 12 kWh/100 km and the proportion of NEVs in the total sales of new vehicles shall be raised to 20% by 2025.

4.110. New rules were adopted in May 2019 to improve the management of the recycling and dismantling of scrapped motor vehicles. The regulations lift the quota restriction on the number of recycling enterprises allowed in each region; though, without a qualification, no company or individual may operate such a business. The new rules are set to increase China's recycling and dismantling capability and promote the healthy development of the scrap industry.

4.111. Similar to the whole manufacturing sector, the machinery and equipment industry was hit hard by the COVID‑19 outbreak. (...) The authorities note that machinery industry policy aims to pursue innovation-driven development; promote the transformation towards an intelligent, green, and service-oriented machinery industry; promote the optimization of industrial structures; improve product quality; improve the utilization rates of resources and energies; and reduce pollutant emissions.

4.114. Other strategic actions in machinery and equipment industries include: (i) the MIIT's Guiding Opinions on Accelerating the Development of Environmental Protection Equipment Manufacturing Industry, which set the goal of reaching a production value of CNY 1 trillion for environmental equipment manufacturing by 2020; and (ii) the Action Plans for High-End Smart Remanufacturing (2018-2020). (...).

4.118. Going forward with its capacity reduction efforts, in January 2018, China announced a new policy to forbid steel plants from increasing their capacity. They were also required to remove at least 1.25 tonnes of outdated capacity for every tonne of new capacity in "environmentally sensitive" areas of the Beijing-Tianjin-Hebei region, the Yangtze River Delta, and the Pearl River Delta. (...) The Notice also imposed some environment related provisions and prohibited steel smelting capacity extensions.

4.129. (...) the [Shipbuilding Industry Deepening Structural Adjustment, Accelerating Transformation and Upgrading Action Plan (2016-20)] Plan (...) urges shipbuilders to comply with environmental good practices and promote green shipping and energy efficiency. China's policy to promote a green shipbuilding industry was previously signalled in 2009, as the country proposed to accelerate the scrap-and-build of old fleets and eliminate single-hulled oil tankers, aiming to increase the safety of ships and decrease the environmental burden from shipping by replacing old fleets with new greener vessels.

Table A2.2 WTO dispute settlement cases involving China, 1 January 2018-13 April 2021
Subject: Certain measures related to renewable energy
Respondent/complainant: United States/China
Request for consultation received: 14/08/2018
Status (as at 13 April 2021): In consultations
WTO document series: WT/DS563

Table A2.2 WTO dispute settlement cases involving China, 1 January 2018-13 April 2021
Subject: Safeguard measure on imports of crystalline silicon photovoltaic products
Respondent/complainant: United States/China
Request for consultation received: 14/08/2018
Status (as at 13 April 2021): Panel composed. Delayed
WTO document series: WT/DS562