China Aims to Find the Best of Both Worlds

The Shanghai government plans to issue 35% more car registrations this year as it battles to counter the monetary recession.

The economists are banking on an increase in the take-up of luxury goods to boost the country's finances and nurture the green shoots of recovery and new growth.

It is estimated that this could result in more than 100,000 additional vehicles taking to the chinese roads.

As reported in our earlier story, because of concerns about pollution and other green issues, the authorities have, up to now, imposed severe restrictions on car ownership. This policy lead to the bizarre spectacle of bog-standard licence plates becoming available only via auction to the highest bidder.

The city's Vice Mayor, Tang Dengjie, said that the increased level of registration issues would still be very low for a conurbation the size of Shanghai.

Other plans include tax incentives to persuade existing car owners to purchase new and more efficient models. This policy would seem to be one possible solution to the Chinese anomaly which seeks to encourage spending whilst still limiting the environmental fall-out.

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