This year China’s Ministry of Industry and Information Technology announced the New Energy Vehicle Promotion Plan, whereby the government will invest over 100 billion Yuan during the period 2011 – 2020 to promote energy conservation and develop the “new energy vehicle” industry supply chain. China is on a path to become the world’s largest car market. At the same time, the Chinese government is working actively to promote the development of the electric vehicle market in China through the use of policy tools. During the period of implementation of China’s 11th Five-year Plan, the Chinese government will be investing 7.5 billion Yuan in the development of vehicles powered by alternative energy sources, and a government subsidy of 60,000 Yuan will be provided for every electric vehicle sold.
According to Snow Tsao of the Department of Investment Services in Taipai, 
Taiwanese firms benefit from sharing a common linguistic and cultural background with their Chinese counterparts. Some Taiwanese companies have been active in the China market for two decades, and have acquired an in-depth understanding of Chinese business culture. This insider knowledge will be very helpful for international corporations seeking to develop the business opportunities that the Chinese electric vehicle market offers. Foreign companies can also benefit from Taiwanese firms’ expertise in both large-volume manufacturing and the small-volume manufacturing of large numbers of different product types; by working with Taiwanese partner companies, international corporations can rapidly reduce their manufacturing costs and retail prices.
“Smart” electric vehicles constitute one of the four “smart” industries whose growth the Taiwanese government is promoting. Taiwan’s Executive Yuan has approved the Intelligent Electric Vehicle Development Strategies and Action Plan, whereby a “model” pilot project will be initiated in 2011. In addition, the Ministry of Economic Affairs has formulated the Key Points Regarding the Provision of Subsidies and Incentives for Electric Vehicle Development, under which the government will be subsidizing the purchase of electric vehicles by consumers in Taiwan. Through these measures, the Taiwanese government is actively promoting the development of the electric vehicle industry in Taiwan.