Geely Chairman suggests plans to encounter auto-industry challenges

• Source: Global Times
• [15:57 March 04 2010]
• Comments

Geely Chairman and Chinese People's Political Consultative Conference (CPPCC) member Li Shufu, told Xinhua on March 3 that China should draw up strategies to face the challenges of energy use, environmental protection and traffic congestion.

Li said the Chinese auto market, the biggest in the world, will keep growing faster in the next decade. China has to take precautions to prepare for many more vehicles that will be produced, which will result in greater pressure on environmental protection and oil consumption.

In his CPPCC proposal entitled "Preparations for the Coming of Auto Society", Li suggests establishing a research group to study the coordinated development of the automobile industry, economy, society and environment.

Li urged the government to set mandatory fuel economy rules to effectively reduce the average energy use of vehicles in order to enter the market.

He also suggested every Chinese city to plan for a reasonable public transport infrastructure and the way people travel, and to have an integrated plan considering public transport priority versus private vehicles, and not just limiting the number of private cars.

Finally, Li hopes the government could offer auto companies more autonomy, by approving the relaxation of restrictions on investments in the auto industry, and encourage competition in the auto market.

The CPPCC member is also proposing increasing the personal income tax threshold, as well as reforming the personal income tax system, and how educational reform should be coordinated with the upgrading of industry.

Agencies and Shi Jierui contributed to this story