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China gives thumbs up to hybrids with new green-car category

Toyota and Honda to benefit from policy shift

A Toyota Levin plug-in hybrid vehicle is displayed at the Auto China motor show in Beijing.   © Reuters

BEIJING -- The Chinese government said on Monday it would create a new category under fossil-fuel-powered cars, that is expected to include hybrid vehicles, from January in a widely anticipated move to relax controls on automakers and to encourage production.

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