China will encourage the manufacture and use of small, low-emission cars, overturning current restrictions on them to help curb its growing appetite for oil, the country's top economic planning body said.

Parking fees for small cars should be lower, officials should lead the way in using them and limits on their use as taxis should be lifted, the National Development and Reform Commission said in a statement on its Web site. "The safety, power and appearance of energy saving and environmentally friendly low-emission cars have all improved greatly," the commission said, adding that all restrictions should be lifted by March 1.

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