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Hainan’s 2030 Fossil Fuel Vehicle Ban Tests Road Funding Model

Published: Jul. 16, 2026  2:44 a.m.  GMT+8
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Visitors look at a new-energy SUV at an auto show in Haikou, China, July 9, 2026. Photo: VCG
Visitors look at a new-energy SUV at an auto show in Haikou, China, July 9, 2026. Photo: VCG

China’s southern island province of Hainan has reaffirmed its plan to ban sales of fossil-fuel-powered vehicles by 2030, sharpening debate over how to fund road maintenance as fuel-tax revenue declines.

The move underscores a growing challenge for governments in China and beyond: how to replace the traditional gasoline-tax funding model as electric-vehicle adoption accelerates and drivers consume less fuel.

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