The guideline was issued by the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Science and Technology.

According to the guideline, China will foster innovation, step up research and development in new energy cars and smart cars, and encourage automakers to join hands with internet companies.

"Innovation is the engine of our drive to build a globally competitive industry," said Miao Wei, minister of industry and information technology.

"We are lagging behind developed countries in terms of traditional cars, but we have laid a good foundation and now enjoy favorable conditions in terms of new energy vehicles," Miao said.

China has been the world's largest new energy market since 2015. More than 500,000 such vehicles were sold in 2016, bringing the number of such cars on China's roads to 1 million, accounting for 50 percent of the global total.

Miao said cars are transforming from tools of transportation into large, mobile smart terminals worldwide, and the emergence of Chinese internet and telecom giants including Tencent Holdings Ltd and Huawei Technologies Co Ltd can support automakers to take the lead not only in new energy vehicles but also smart, connected cars.

"The boom in bike sharing in China is an example we can learn from. In addition to the innovative business mode, one important factor of its success is the use of advanced positioning technologies."

BYD Co Ltd, the world's largest new energy carmaker, released its electric bus strategy in 2010.

Wang Chuanfu, chairman of BYD, said: "We believe car electrification is an inevitable trend, and private cars will be the next pillar of its development after buses."

He said BYD will promote hybrids in some 200 cities across the country in three to five years.

In terms of smart, connected cars, Wang said BYD will introduce driving assistance functions including pedestrian detection before 2020.

"Of course, the use of smart and connected cars in their real sense also depends on the development of infrastructure and the 5G network."

Changan Automobile Co Ltd is to invest 21 billion yuan ($3.05 billion) in 10 years to expand its current 600-member smart car research team to 2,000 people. It now has research and development centers in China, the United States, the United Kingdom, Italy and Japan.

"Cars will not be cars without smart functions in the future," said Zhu Huarong, the carmaker's president. He said its cars with high-level autonomous driving functions will hit the market in 2020.

lifusheng@chinadaily.com.cn

(China Daily USA 04/26/2017 page13)