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In order to reduce the emission of automobile exhaust and overcome energy crisis, like other countries, China has launched incentive policies to develop new energy vehicles including electric vehicles since 2001. Additionally, as one of priorities in the Chinese national 5-year plans, it is a strategy to catch up in auto industries. This paper reviews the latest policy issued in November 2007 and analyzes its impact on the EV development in China based on the comparison with policies on new energy vehicle in advanced countries. WXEV is taken as case to explore the growth of new energy vehicles in China. In addition, the battery electric bus in HZ is analyzed to describe the commercialization of new energy vehicles in China. Recommendations to promote the commercialization of new energy vehicles are given at the end of paper.