China to Ban Gas and Diesel Car Sales to Spur EVs

Electric vehicles (EVs) have a bright future in the world's most populous nation and largest auto market, unlike those powered by oil. That was a ministry chief's message at an auto forum on Saturday.

2 minute read

September 13, 2017, 7:00 AM PDT

By Irvin Dawid


Hong Kong Taxis

Sarunyu L / Shutterstock

China has yet to set a date for the ban, but it wanted to send a message to auto manufacturers that there's no future in sticking with petroleum-powered motor vehicles. China's plan would also ban the domestic production of oil-fueled vehicles.

"Xin Guobin, the vice minister of industry and information technology, said the government is working with other regulators on a timetable to end production and sales," reports Bloomberg News. "The move will have a profound impact on the environment and growth of China's auto industry, Xin said at an auto forum in Tianjin on [Sept. 9]."

A ban on combustion-engine vehicles will help push both local and global automakers to shift toward electric vehicles, a carrot-and-stick approach that could boost sales of energy-efficient cars and trucks and reduce air pollution while serving the strategic goal of cutting oil imports.

Cap-and-trade

Currently, China "offers generous subsidies to makers of new-energy vehicles. It also plans to require automakers to earn enough credits or buy them from competitors with a surplus under a new cap-and-trade program for fuel economy and emissions."

A report for Reuters indicates that the Chinese government is "studying" the ban, which would correspond with bans in several other countries (see below). China has already "set goals for electric and plug-in hybrid cars to make up at least a fifth of Chinese auto sales by 2025," write Tony Munroe and Yawen Chen.

Oil consumption increasing

In addition to reducing air pollution and carbon emissions, which China promised to cap by 2030 according to the Paris climate accord, the ban intends to curb rising oil consumption.

Last month, state oil major China National Petroleum Corp said China's energy demand will peak by 2040, later than the previous forecast of 2035, as transportation fuel consumption rises through the middle of the century.

International movement to ban ICEs

The international movement away from vehicles with international combustion engines has already been set in motion by Great Britain, France, India, Norway, Netherlands, and auto manufacturer Volvo, which was acquired in 2010 by Geely Holding Group, a Chinese multinational auto manufacturing company.

China is not only the world's largest auto market. It also accounts for 40 percent of global demand for electric and hybrid vehicles, according to Joe McDonald in a report on the proposed ban. In 2016, EV sales in China totaled 336,000, compared to 159,620 in the U.S.

Related in Planetizen:

Saturday, September 9, 2017 in Bloomberg News

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 23, 2025 - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

Yellow electric school bus with preteen students exiting.

California Invests Additional $5M in Electric School Buses

The state wants to electrify all of its school bus fleets by 2035.

April 25 - Associated Press

City Hall building in Austin, Texas.

Austin Launches $2M Homelessness Prevention Fund

A new grant program from the city’s Homeless Strategy Office will fund rental assistance and supportive services.

April 25 - Spectrum Local News

Brick school building with mid-sized tree on front lawn.

Alabama School Forestry Initiative Brings Trees to Schoolyards

Trees can improve physical and mental health for students and commnity members.

April 25 - Governing