China plans to stop local subsidies for electric cars

Bloomberg

China is planning to tell local governments to stop offering subsidies for electric cars and other new-energy vehicles, people familiar with the matter said, a move that could undermine demand for autos made by
companies including BYD Co. and BAIC Motor Corp.
The Ministry of Finance is working on a plan that would mandate authorities to phase out the incentives to discourage protectionism and help rein in state expenditure, the people said, asking not to be identified discussing government policy proposals that aren’t yet public. The plan may be implemented as early as next year.
Automakers would still be entitled to the central government’s funds, the people said.
The ministry didn’t immediately respond to a fax requesting comments.