East China's Shandong province said Wednesday it has tightened its investment regulations, including a move to not approve new gasoline-powered car producers.
Meanwhile, new energy vehicle manufacturers are now required to have power system and whole-vehicle research and development capacities before receiving government approval for establishment, the provincial government said.
China has been offering subsidies for new energy vehicle purchases in a bid to increase the numbers of cleaner vehicles on the road.
It has signalled the intention to join countries such as Britain and France with plans to ban the manufacturing and sales of fossil fuel cars.
Xin Guobin, China's vice-minister of Industry and Information Technology, said in September that China has begun researching a timetable to phase out the production and sales of fossil fuel cars.
The provincial government also announced that it would no longer approve new plants in industries plagued by overcapacity, such as steel, electrolytic aluminum, plate glass and shipbuilding.
In addition, it will not approve capacity increases for coal production companies, and new dangerous chemicals projects will now require investment of more than 300 million yuan ($45.2 million) to receive approval.