Does the Chinese government offer incentives for hybrids, EVs, and cleaner public transit? While it may not have a significant short-term effect, it should work in the long term.
More importantly, they get a separate allocation in the "right to car" lottery in some cities (Beijing), or a reduced plate tax rate, or can even drive everyday instead of 2 out of 3 days.
Electric (battery, not overhead trolly-style) and natural gas buses are increasingly common, though I'm not aware what the current status is here. There was one that passed in front of our apartment building in Beijing.