Chinese automobile companies are overly reliant on government subsidies and the government will instead hasten the establishment of a points-based system similar to that used in California to encourage production and use of new-energy vehicles, the minister said at a conference in Beijing Saturday. The government will cut 2017-2018 subsidies by 20 percent from those granted in 2016, and 2019-2020 subsidies will be 40 percent less than this year, Lou said. President Xi Jinping has designated the development of electric vehicles as a strategic initiative in a bid to upgrade the auto industry, curb pollution and cut dependence on imported oil. The government is stepping up its support after signs the combination of research grants, consumer subsidies and infrastructure investments is yielding results as new-energy vehicle sales surged more than fourfold last year.