The State Council's executive meeting on March 25 called for upgrades in manufacturing, and encouraged industries to adapt intelligence and integrate with the Internet.

Chaired by Premier Li Keqiang, the meeting announced plans for government support, special funding and tax incentives focusing on 10 industrial sectors including information technology and energy-saving vehicles.

General Electric Intelligent Platforms estimated that integrating with the Internet would benefit the manufacturers with about 20 percent more efficiency, 20 percent less costs and 10 percent savings on energy.

Zhang said Chinese smart vehicles are in the startup phase, while while the global carmaker giants' products and technologies work well only on highways, and Google's self-driving car can even navigate in urban areas.

Dong said the introduction of smart cars would mean fewer accidents as vehicles measure distances themselves and utilize automatic braking and parking.

Chinese Internet companies ready to go

? Jan 20, Le Holdings Co announced it has set up Leshi Super Electric Car Company responsible for its smart, Internet-based electric car program.

? Feb 3, Internet car service platform Yongche Inc, domestic carmaker Chery Automobile Co and telematics company Pateo Corp established a joint venture to build fully electric smart cars, not for sale, but for a sharing service.

? Mar 12, SAIC Motor Corp Ltd and Alibaba Group Holding Ltd announced a 1-billion-yuan fund to develop an Internet connected vehicle, and hope to launch in 2016.

? Mar 10, Robin Li confirmed publicly Baidu Inc has been researching smart cars with auto manufacturers, and he is willing to cooperate with carmakers.

?Mar 23, BAIC Motor Corp and Le Holdings Co signed a strategic agreement to build smart cars, and their first product is expected to make its debut at the Shanghai auto show in April. Letv Holdings neither confirmed nor denied this project is related to its "Super Electric Car".

?Mar 23, Tencent Holdings Ltd, Hon Hai Precision Industry Co Ltd and luxury car dealer China Harmony Auto Holding Ltd teamed up to manufacture smart electric cars.