China has adopted an aggressive timeline for improved vehicle emissions standards but has not yet put in place cleaner fuel standards, which are a critical component of the European regulatory program being followed. Lack of cleaner fuels would jeopardize the investment being made in cleaner vehicle technologies. Use of higher sulfur fuels increases emissions and can cause important emission-control devices to fail. ICCT and Tsinghua University completed a cost benefit analysis of cleaner fuels and vehicles for China, available below in both English and Chinese.
Link (English): www.theicct.org/documents/Reduced_Sulfur_China_ES_ICCT_2006.pdf