China announced on Tuesday that vehicle investment projects will be delegated to local governments and the approval system will be changed to a filing system in 2019, a move that an expert said shows the country's ongoing efforts to streamline administration and support the new energy vehicle industry.

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The National Development and Reform Commission(NDRC) has rolled out a new regulation on auto industry investment, under which vehicle investment projects will be delegated to local governments and the approval system will be changed to a filing system. The new regulation takes effect on January 10, 2019.

The NDRC said that the cancellation of the approval system is meant to actively adapt to industry evolution and create a better policy environment for local governments and firms.

The vehicle industry is currently facing the problems of overlapping management of different departments and an inefficient approval process, which put a heavy burden  on firms and evoke strong dissatisfaction, said the NDRC.

The new regulation calls for acceleration of research and industrialization of the industry, including production of key parts and advanced production equipment, and the development of battery recycling technology for new energy vehicles.

It also puts stricter control on the increase of internal combustion vehicles capacity, while encouraging orderly development of new energy vehicles.

Jia Xinguang, an expert at the China Automobile Dealers Association, told the Global Times on Tuesday that the new regulation shows China is streamlining government functions and administration and delegating powers while improving regulation nationwide.

The country's new governing model for the auto industry aligns with the general development concepts on environmental protection, Jia added.