China is in the early stages of drafting legislation to regulate the production of more environmentally friendly cars and promote further research in the area.

The National Development and Reform Commission's (NDRC) regulations focus on hybrid vehicles and fuel cell vehicles, as well as other forms of clean technology to reduce emissions.

Details of the proposals, along with an invitation for further suggestions, were published on the NDRC website.

As it stands, it is proposed that cars running on alternative sources will be divided up into three categories according to how viable and advanced their technology is deemed to be, with each class of car being subject to different production quotas and regulations.

Cars deemed to be prototypes and those in the middle category for technology, for instance, will be permitted to be used in designated areas and will have limits on production, while top-end cars will only be subject to the same regulations as regular cars.

The law would also stipulate that car companies need to apply for permission before it is granted licence to manufacture its cars.

Last year over seven million vehicles were manufactured in China - a rise of just over 27 per cent from the year before.

The NDRC is regarded as China's chief policymaking and research organisation.

Ÿ Adfero Ltd