Recently, the Ministry of Finance released its "Reply to Proposal No. 1807 of the Fourth Session of the 13th National People's Congress," which stated that the central government will continue to strongly support research institutions in conducting technological innovation in the field of new energy vehicles.

Conventional vehicles use fossil fuels as their power source, consuming large amounts of fossil energy and emitting exhaust gases that are a major source of air pollution. With the increasingly severe impacts of global climate change, energy conservation, emission reduction, and green development have become a global consensus. The development of new energy vehicles is of great significance for reducing carbon emissions and optimizing the energy consumption structure; therefore, replacing traditional fuel vehicles with new energy vehicles has become an inevitable trend.

my country's new energy vehicle industry has developed rapidly. According to statistics, in 2009, my country's annual sales of new energy vehicles were less than 500 units, but by 2020, this had increased to 1.3 million units, making my country the world's largest market for six consecutive years. Furthermore, China has established a basically complete industrial system and made significant technological progress. These achievements are inseparable from the government's policy support for the new energy vehicle industry.

As early as 2012, my country released the "Energy Saving and New Energy Vehicle Industry Development Plan (2012-2020)," and in 2020, it released the "New Energy Vehicle Industry Development Plan (2021-2035)," providing directional guidance for the new energy vehicle industry. In terms of fiscal policy, a series of subsidy policies have been adopted to support the promotion and application of new energy vehicles, such as the "Notice on Improving the Fiscal Subsidy Policy for the Promotion and Application of New Energy Vehicles" and the "Notice on Further Improving the Fiscal Subsidy Policy for the Promotion and Application of New Energy Vehicles" released in 2020.

Previously, my country's financial support for the new energy vehicle industry mainly focused on purchase subsidies. This time, the Ministry of Finance will provide support for the technological development of new energy vehicles from the perspective of technological innovation, including supporting research institutions in conducting technological innovation through basic research funding and central government science and technology programs, and adopting a "first implementation, then funding" model to encourage enterprises to conduct technological research and development activities.

Currently, the lack of strong core technological innovation capabilities is one of the main problems facing my country's new energy vehicle industry, including insufficient performance in terms of battery life and safety, and a gap between the drive motor system and internationally advanced levels. Overcoming shortcomings in core technologies should be the focus of my country's new energy vehicle technology development. Furthermore, key components are another area where breakthroughs are urgently needed to overcome existing limitations.

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