China issued a set of compulsory fuel efficiency standards for passenger vehicles Thursday.

The standards, issued by the State Administration of Quality Supervis ion, Inspection and Quarantine and the State Commission for Administration of Standardization, will be phased in starting July 1, 2005.

In the first stage, which lasts until Jan. 1, 2008, Chinese passenger vehicles are required to meet the current average level of Chinese-made passenger vehicles. In the second stage, vehicle's fuel consumption must drop by 10 percent from the first stage level.

Models under production are granted a one-year grace period to meet the standards.

According to an official with the State Administration of Quality Supervision, Inspection and Quarantine, China will also issue standards on fuel efficiency of other types of vehicles in the future. The aim is to promote efficient use of fuel and control sky rocketing energy consumption.

As the number of automobiles in China increases rapidly, the demand for fuel is also rising very fast. Currently, automobile fuel consumption accounts for one-third of China's crude oil imports.