New energy vehicle subsidies in spotlight as ministries launch probe

A ministry-level nationwide investigation is set to be launched into fraudulent subsidies of new energy vehicle manufacturers, the Ministry of Finance said on Monday.

The investigation will target new energy vehicle manufacturers that received subsidies from the government in 2013 and 2014, and those who applied for the subsidies in 2015. The probe will be jointly conducted by the ministries of industry and information technology, finance, and science and technology, and the National Development and Reform Commission.

The high subsidies and lack of supervision of new energy vehicles have given rise to fraudulent behavior, according to an investigative report released earlier this month by The Economic Observer, a Beijing-based newspaper.