China has announced a new policy to accelerate the transition from old urban buses to new electric ones, promoting the electrification of public transportation. The Ministry of Transport, National Development and Reform Commission, and Ministry of Finance in China have introduced subsidies to support this initiative. Bus operators can receive substantial subsidies for purchasing electric buses, including hydrogen fuel cell buses, as replacements for outdated ones. The policy also includes subsidies for replacing power batteries that have exceeded their warranty periods or fail safety standards. These subsidies, funded by ultra-long special treasury bonds, aim to expedite the retirement of old buses and boost the deployment of new energy vehicles. The policy is part of the State Council's efforts to upgrade equipment and implement trade-in programs using fiscal subsidies. The central and local governments will allocate these subsidies based on regional ratios to optimize resource allocation and manage excess power battery capacity. The goal is to enhance the country's energy industry and promote sustainability. China's power battery sales have been on the rise, with a significant increase last year. The policy aims to absorb the excess production capacity, which currently exceeds 1,800 gigawatt-hours, and improve resource allocation in the industry. During the Two Sessions, government representatives proposed various measures to support the new energy bus sector, including establishing early-warning mechanisms, enhancing infrastructure planning, and improving recycling systems. Looking ahead, Chinese public transport operators emphasize the need for technological advancements in power batteries, such as enhancing range, reducing charging times, and expanding infrastructure. These improvements are crucial for addressing concerns related to electric buses and ensuring the success of the electrification initiatives in the public transport sector.