China will work with the international community to accelerate innovation in new-energy vehicle technologies, Chinese President Xi Jinping said Tuesday.

Xi’s comments, made in a letter to the World New Energy Vehicle Congress held in Bo’ao, Hainan province, come amid industry-wide uncertainty over cuts to government subsidies for new-energy vehicles.

With China lagging behind developed countries in the traditional automobile sector, Beijing has long pushed car makers toward the new-energy vehicle industry — where it has been investing heavily through subsidies since 2009.

But a rush into the sector by manufacturers has caused overcapacity, prompting a government push to wean the industry off subsidies by 2020. In March, Beijing announced the biggest cuts in subsidies to electric vehicles in five years, saying the cuts would improve the efficiency and competitiveness of vehicles.

China’s definition of new-energy vehicles includes electric vehicles, hybrid vehicles, and fuel cell vehicles.

With subsidies soon to be in the rear-view mirror, the country is shifting toward more indirect policy support for the new-energy vehicle industry. On June 6, the National Development and Reform Commission, China’s top economic planner, updated its policy to forbid local governments from imposing license plate quotas for new-energy vehicles.

The industry adds new drivers to the economic growth of various countries and helps confront the challenge of climate change, Xi said in his letter on Tuesday.

Related: State-Owned Dongfeng Motor Joins New-Energy Fund as Subsidy Cuts Loom