China will soon release a new policy encouraging the production and use of economy cars, pushing forward the drive to a conservation-minded and environmentally friendly society.

Liu Zhi, a National Development Reform Commission (NDRC) official, China's top planning agency, told an energy conference in Beijing that the new policy clarifies rules on compact cars and emissions standards.

The Xinhua News Agency reported Liu explained that compact cars refer to fuel-efficient and low-emissions cars. To be specific, a car body can be no more than 4 meters long and emissions no more than 1.4 liters while the engine power is no less than 45 kilowatts per liter. Prices of such cars are generally within the reach of ordinary consumers.