The People’s Republic of China faces a huge dilemma when it comes to cars.
On the one hand the swift rise of the Chinese automobile industry has brought jobs, investment and a huge measure of prestige to China over the past decade. Only last month, the Shanghai Auto Show eclipsed the New York Auto Show by attracting senior executives from Daimler AG, Toyota and Volkswagen, among others. China’s hunger for new vehicles probably won’t peak for another decade, according to most estimates.
China is now the world’s largest automotive market, surpassing the United States and is unlikely to slip back into second place, noted Columbia University economics professor Jeffrey Sachs during a panel discussion at the International Transport Forum in Leipzig, Germany.
However, Gao Honfeng, China’s vice minister of transport, told that same forum that China is acutely aware of the environmental and other hazards posed by the rapid development of its automotive culture.
There’s been a significant price tag for putting the nation on wheels: most notably in the form of paralyzing traffic jams, choking smog and a costly dependence upon foreign sources of energy.