The government plans to develop electric vehicles at an investment of us $106 million for use in the 2008 Olympics. This move is primarily meant to fight pollution through car emissions. The Chinese government would fund domestic companies to develop vehicles that run on electricity or other power sources. This would save oil and foreign exchange on crude imports and also minimise air pollution.
The government plans to use these electric vehicles for transport services when Beijing hosts the Olympics in 2008. China has been a net oil importer since 1993 due to growing demands for energy in the fast developing country.