Confucius is Confused by China

Confucius is Confused by China

China has renewed subsidies for private buyers of so-called new-energy vehicles — including electric vehicles and plug-in hybrids — for three more years, in part to fight air pollution.

But contrary to some expectations, the renewal did not include gasoline-electric hybrids.

Given the worsening air pollution in many Chinese cities, you might expect Beijing to make reducing vehicle emissions a top priority.

But judging from the revised green vehicle subsidies announced, it appears the government still cares more about promoting so-called game-changing technologies — such as electric vehicles, fuel cells and plug-in hybrids — than controlling pollution.

Meanwhile, China’s pricing regulator says the government has not opened a probe of alleged excess profits in the auto industry, but it is investigating high prices of other consumer products such as eye glasses.

Last month, a Chinese automotive association said it was collecting data on the prices of all foreign cars sold in the country for the National Development and Reform Commission, which regulates prices.