The number of vehicles in China's capital surpassed two million
in September, putting more pressure on the already overburdened
road system.
Beijingers have been accustomed to traffic jams though
complaining frequently. Urbanization experts say the situation in
Beijing is an omen for many other big Chinese cities.
Chinese auto manufacturers are expected to produce 5.6 million
vehicles next year and 10 million before 2010.
Global auto manufacturers have entered the China market, and
according to a Goldman Sachs prediction, global car manufacturers
will invest US$10 billion in China in the next three years.
According to an AT Kearney prediction, sedan sales volume will
reach 3.5 to four million by 2006, while production volume will
rise to at least 4.5 million. Car prices are continuing to fall,
which will further stimulate consumption.
The auto industry has spurred rapid development of the economy
but also brings many problems.
At the beginning of this year, China announced that the total
length of highway had surpassed 10,000 kilometers, second only to
the United States.
Continuing road building is cutting into farmland and oil use is
increasing rapidly, creating further environmental problems.
Imports of petroleum surpassed 80 million tons this year,
setting a new record. If every car consumes 150 liters of gasoline
every month, the current 24 million autos will consume 420 million
barrels of crude oil. When the world base oil rises one dollar,
China will have to pay an extra US$500 million.
Measures to increase energy utilization efficiency, strictly
implement an annual exhaust inspection system, improve oil quality,
store oil, and sponsor hi-tech auto research are urgently
required.
(Xinhua News Agency December 29, 2003)