According to Reuters, the Chinese government has noticed the trend and is starting to clamp down on new electric vehicle firms. They believe that these new start up have been making poorly-made models to cash in on subsidies while others are simply cheating the system outright.
In order to solve the problem, the government will stop issuing approvals to companies seeking to build electric vehicles and the halt is expected to last until early 2018. Meanwhile, they are expected to reexamine companies which already possess a license to build electric vehicles. If they are deemed not able to launch a successful product, their license could be revoked.