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Parking Strife Frustrates China's Auto Ambitions

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Parking Strife Frustrates China's Auto Ambitions

By FENG JIANHUA


More cars on the road make driving and parking less convenient.

His modest salary notwithstanding, three years ago Han Zhendong bought a car. It brought him freedom and convenience but also a new problem: where to put it. The number of autos in Beijing has exceeded 2 million, and parking capacity is merely 600,000. Han has lost 9 driving credits in recent months for illegal parking, and on 3 more credits being deducted, his driving license will be suspended.

Han lives in one of the many residential compounds built in the 1980s, when parking lots were not required as so few people owned private cars. Now there are so many cars in the area that they monopolize public space formerly used to take exercise and block pathways. Parking issues also trigger friction among neighbors. "Cars are frequently in my way in the morning when I'm in a hurry to go to work. I have to call their owners to move them. It takes time, and it's annoying," complains Han Zhendong.

Today's parking problems are common in China's big cities. Statistics show that only one of every five autos has a legal parking space. In Shanghai, the parking capacity provides for a negligible two percent of its total automobiles, far below international standards. In Hangzhou, capital of Zhejiang Province, one car in every three has a space, but in Chongqing, China's youngest municipality, the ratio plummets to one in every 13.

According to a newspaper survey, 65 percent of interviewed car owners said the biggest headaches about driving are parking difficulties and high fees.

Parking Difficulties Inhibit Auto Purchases


This parking complex slightly eases the parking problem.

China's rapid economic growth, and status as home to the most auto manufacturers in the world, have given impetus to car purchasing. The number of private cars has exceeded 10 million and is still increasing 20 to 30 percent annually.

Yet parking problems threaten China's auto dream. Scarce parking space has dampened many people's buying ardor, and consequently retarded auto industry growth. For example, in Guangzhou in the first half of this year, only 30,000 or so cars were licensed. This can be attributed to scant parking lots and exorbitant parking fees. Some enterprises in Shanghai encourage their staff to buy private cars, but for those who live in residential quarters without parking lots, the trouble they bring outweighs the convenience.

Why the Parking Problem

"The parking problem has many causes. One is negligence and lack of foresight on the part of the government," says Liu Xiaoming, vice director of Beijing Communication Commission.

At the beginning of the 1990s, it was estimated that by 2000 the number of Beijing's automobiles would reach 700,000 to 800,000. The number turned out to be 1.5 million. Guided by this gross underestimate, parking facility construction was woefully insufficient for today's high demands.


Busy streets with no place to park.

The exorbitant cost of parking lots has deterred drivers from using them, and many report a low occupation rate. For instance, the Beijing Exhibition Hall Parking Lot, a two-story building with a capacity for over 1,000 cars, is at least two-thirds empty every day. A neighboring lot, Tianyi Market, has a tiny capacity of 158, but is packed at all hours.

"We charge each car two yuan per hour. The maximum fee before 9 pm is 10 yuan, and 20 yuan within 24 hours, while most parking lots in Beijing, including that of Beijing Exhibition Hall, charge five yuan per hour," says Wu Zengyou, chief of the market's Estate Management Department.

Less affluent car owners are reluctant to pay 5 yuan per hour for parking, so some risk parking on the street when they cannot find cheap lots. Well aware of the situation, policemen sometimes turn a blind eye to them, but one parking ticket could cost the unlucky driver 100 to 200 yuan.

Parking Construction Open to Foreign Investments


Parking is impossible in narrow, twisting lanes through the old residential districts.

"Parking lots cannot receive social investment unless they are profitable," says Liu Xiaoming. He proposes that parking lot construction be accelerated by making them a business, insisting that incentives must be offered to encourage social investments in parking lot construction. After two decades of a market economy, Chinese people are well aware that economic issues should be solved by market rather than administrative rules.

Beijing Communication Commission is working on a measure to lift charges for roadside parking in line with international practice, with the intention of making roadside parking a temporary expedient, and attracting more cars into regular parking lots. Meanwhile, investors and operators of parking lots will have more say in setting and adjusting their charges. "When these two methods are implemented, parking lots will thrive," Liu predicts.

According to his calculations, cars using commercial parking space will be no less than 2 million by 2008. If each owner spends 3 yuan on parking every day, that translates to a total 6 million yuan daily, and 20 billion annually.

According to Liu, all obstacles have been cleared for social investors to enter Beijing's parking lot sector, and foreign investment can expect national treatment.

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