Five innovations promote development

　　Five innovations to promote the development of new energy vehicles

　　【Editor's Note】 On December 1, 2010, China International New Automotive Development Forum jointly organized by the State Council Development Research Center and China Council for the Promotion of International Trade opened at Beijing Conference Center. It is the first time that national central ministerial department held China International New Automotive Development Forum. At the meeting, Mr. Zhang Yutai, director of the State Council Development Research Center made a speech.

　　Five innovations to promote the development of new energy vehicles

　　Like any new thing, the new energy vehicle development has its laws, which means its have to face risks and uncertainties of technology choice, supply chain, finance, consumer market and regulatory policy from emergence to maturity.

　　Fundamentally speaking, we need five innovations to resolve and overcome these risks and uncertainties. The first is the innovation of policy environment, especially the effectiveness of regulations and industrial policies. The second is innovative technology path. Under situation of diversification in the technology, it is very crucial to cultivate original culture of innovation

　　The third is division of the value chain of innovation, trying to lead and encourage non-traditional auto industries participate actively in industrial division and coordination. Fourth is innovative business model, exploring integration of social resources and complementary advantages under different business models. The fifth is innovative cooperation mechanism, which requires the government and enterprises opening up, especially pay great attention to the development of industry cooperation alliance formed by various sides.

　　Of course, we don’t want to exclude particularity because of following the laws. We don’t exclude major breakthroughs in the process of diversifying development. There are differences of leading technology routes, business models and management between different countries and companies, showing a flourishing diversity pattern. Electric vehicles are generally considered as the main force for development of new energy vehicles in the future, and at the same time every country explores boldly to push the research and commercialization of new energy vehicles. Precious experience has been accumulated, which is also undoubtedly a valuable asset. At the Forum, guests from the European Union, Germany, Japan and the United States will share their experience for us.

　　Ladies and gentlemen, China is in critical period of building a moderately prosperous society, and the next year will be starting point for China's national economic and social development in the 12th Five-Year Plan. On October 10, 2010, the State Council announced decision of accelerating the cultivation and development of strategic emerging industries. Chinese government decided to first cultivate and develop the new generation of information technology, industries including advanced biotechnology equipment manufacturing, new energy, new materials and new energy vehicles. It is clearly pointed out that seven industries including new energy vehicles are important force to lead economic and social development in the future and an inevitable choice to achieve sustainable development and build a moderately prosperous society. In addition, the seven industries are supposed to important measures to accelerate the upgrading of industrial structure and transformation of industrial development pattern as well as improve international competitiveness.

　　China plans to use 20 years so that the overall innovation capability and industrial development of seven strategic new industries can reach the world advanced level, which can provide sustainable development of economy and society with strong support. According to Chinese government, the new energy vehicles industry should be a leading industry for national economy in coming years. Development priorities and the main task of China’s new energy vehicles industry are to focus on breakthroughs in core technologies such as battery powered motors and electronic control system so that promote popularity and industrialization of plug-in hybrid vehicles and electric vehicles. Meanwhile, China will conduct technological researches on fields including fuel cell vehicles and vigorously promote development of high-efficient and low emission energy-saving vehicles.

　　Since 2009, China has conducted energy-saving and new energy vehicles demonstration and promotion project in the field of public services of 20 cities in China, and pilot programs of subsidies for private consumers purchasing new energy vehicles in 5 cities of China.

　　Subsidies for electric passenger vehicles are up to 60,000 RMB, and at the forum representatives from the above pilot cities will introduce the progress of the new energy vehicles pilot projects. At present, the Chinese authorities are working to improve and accelerate specific programs and related supporting policies of new energy vehicles industry. I believe that with the continuous introduction and enhancement of these policies, the development of new energy vehicles in China will reach a new level.

　　Status of China as the world's largest auto producer and consumer will strengthen

　　Ladies and gentlemen, China’s auto industry has been fully integrated into the growth as well as change of global automotive industry, which means China will continue to play an important role in global automotive industry. According to latest statistics from China Association of Automobile Manufacturers, China’s car production and sales respectively reached 14,623,800 and 14,677,000 units in the first 10 months of 2010, an increase of 34.49% and 34.76% compared with the same period of last year. In accordance with this trend, China’s car production and sales are expected to be more than 17 million units by the end of this year, further strengthening China’s position as the world's largest auto producer and consumer.

　　However, behind the rapid expansion in size, there still exist problems such as weak R&D capability and core competitiveness of industry. In terms of the development of China's auto industry, the new energy vehicle is a rare opportunity for China to achieve leapfrog development.

　　Of course, we have to pay a lot in order to realize the dream, especially the cooperation between China’s and foreign auto industry. Auto became the machine to change the world in the last century, so we assume the new energy technologies will become the power to change the auto. Environmentally friendly energy-saving and low-carbon green are mankind's common goal of fighting, which calls for fundamental changes of the global automotive industry objectively. New auto revolution brought by the new energy vehicles will be an important part of ecological civilization. Let us join hands in order to create a better future belongs to all mankind in accordance with scientific planning.

　　I wish the forum great success, thank you! (Translator: Qinghua/Wade)

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　　http://auto.sohu.com/20101201/n278025402_1.shtml