China Wednesday listed low-emission, economical cars as "encouraged" in a document, aiming to reduce the increasing oil consumption partly due to its soaring number of cars.

Liu Zhi, a senior official with the National Development and Research Center (NDRC), made this announcement at a press conference of the Information Office of the State Council, noting that cars using new energy, like electricity and liquid petroleum gas, are also on the same list.

The document, an attempt to guide the industrial restructuring, were released by the NDRC Wednesday.

This document provides clear requirements for the encouraged, restricted or to-be-eliminated categories.

Investment projects are categorized largely based on energy-consumption, he said, adding that those using less energy with high-technology are welcome.

According to the official, projects falling into the encouraged category enjoy preferential taxation and financial treatment.

New policies will be issued soon to cancel local restrictions on low-emission cars to encourage higher economic efficiency, he told reporters early this November.

Small cars were hitherto not allowed to run in over 80 cities of the country despite Primer Wen Jiabao's call for canceling restrictions on cars with low emission, low oil consumption and high efficiency this summer.

It is unwise to restrict all small cars, not only those of low efficiency, but also efficient ones, especially in China, a country experiencing a booming car industry and suffering blame for its soaring oil demand, he said previously.

Owing to soaring international oil prices, China has seen its refined oil price rise five times in 2005.

The number of private-owned cars is expected to reach 17 million by the end of this year from the 2000 figure of 6.25 million, more than double during the five-year period, according to data from the National Bureau of Statistics.

Source: Xinhua