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China Set to Limit Automobile Purchases

July 15, 2013, 1:20 PM

What's the Latest Development?

In order to combat traffic jams and choking pollution, China will attempt to decrease the amount of cars in its major cities by imposing stricter limits on automobile purchases. The country is already the world's largest market for personal vehicles. "Regulators have tried to deal with both the pollution and traffic problems by enacting vehicle lotteries in Beijing, Shanghai and two other large cities. That has limited the number of motorists who can register new vehicles to just 20,000 each month. To put that into perspective, there are 1.53 million potential buyers waiting to be chosen, according to The Associated Press."

What's the Big Idea?

Chinese regulators find themselves in a delicate situation, caught between encouraging economic growth and making city life livable for the country's citizens. "The automotive industry is one of the stars of the country's manufacturing sector and not something Beijing's bureaucrats feel they can shut off. They continue trying to limit vehicle sales in already crowded cities while encouraging growth in regions of the country that are only beginning to catch up with the economic boom along the coast." Authorities are considering a loophole for electric vehicles which would strengthen industry while limiting environmental damage. 

Photo credit: Shutterstock.com

Read it at Global Post


China Set to Limit Automobi...

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