China Invests in Developing Alternative-Energy Vehicles

China's finance ministry says the country's central government will spend as much as 2 billion yuan ($315 million) per year to help develop more fuel-efficient vehicles.

The vaguely worded statement does not say when the program will begin, how long it will last or which developers would qualify for funding.

The finance ministry says the government also will promote the use of hybrid-powered buses, request China's largest cities to build more charging stations for electric vehicles and push municipalities to adopt licensing, parking and toll policies that favor alternate-energy vehicles.

The ministry says the government also will encourage car rental companies, utilities and public service providers to use alternate-energy vehicles in 25 unidentified test cities.

Bloomberg News notes that China's vehicle population is expected to triple by 2020. It says the air quality in all 32 cities that track pollution fails to meet guidelines set by the World Health Organization.