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China is exploring ways to further boost the domestic demand for new energy vehicles and promote the sustainable development of the industry as more companies resume production since the COVID-19 outbreak, the nation's top industry regulator said on Thursday.

China has set up a transfer payment mechanism to channel funds from the central government to provincial local governments or to shift funds between regional authorities in order to balance revenues (mostly from tax incomes) and fiscal obligations in different areas.

China is not afraid of confrontation, he said, and if necessary will react to Washington's actions.

China increased its nuclear power capacity last year by another 8 GW, boosting its installed capacity to around 34 GW, according to BMI Research, which provides macroeconomic, industry and financial market analysis.

China is speeding up the formation of a new development pattern dominated by domestic cycles and it will be more closely connected with the global economy, offering more extensive market opportunities to other countries, Zhang said.