What is behind the booming auto industry?

• Source: CNTV.CN
• [09:15 December 15 2010]
• Comments

Nicknamed "the city of congestion", Beijing is no stranger to traffic jams. One in four residents here own cars.

Beijing's busiest areas, such as Chang'an avenue, the second and the third ring roads, and the Central Business District are most prone to congestion.

Residents like to joke that if the situation persists, the city will become one huge car park.

One resident said "There was one time I drove half an hour, and traveled less than 100 meters."

One resident said "Once my car was trapped in deadlock for more than an hour."

Beijing is not alone. Congestion has become a common problem beleaguering big and medium sized cities across China. It's thanks to the booming auto industry and the government incentives to boost domestic demand.

Aside from the traffic, pollution is also a threat posed by the rapidly growing industry. Experts have warned of energy supply shortages and over-capacity.

According to Tsinghua University's research, China's energy and resources can sustain no more than 150 million vehicles.

Experts say coordinating growth and social development, will be a major challenge for China's auto industry.