**Our Reporter Zhao Yongxin** The automobile industry is booming, but energy and environmental challenges are flashing red. In many of China’s "latecomer" industries, the auto sector has seen remarkable growth. According to Zhao Hang, director of the China Automotive Technology and Research Center, China’s auto industry is expected to enjoy a rapid growth phase for at least the next two decades. By 2010, domestic car sales are projected to reach 9 million units, with total vehicle ownership hitting 55 million. This would place China as the world’s second-largest auto producer and consumer, after the U.S. However, this fast-paced development comes with significant concerns—particularly in terms of energy consumption and environmental impact. In 2004, China’s oil consumption reached 310 million tons, making it the second-largest oil consumer globally after the U.S. Of that, 81.2 million tons were used for vehicles, accounting for nearly a quarter of total oil use. With the auto industry continuing to expand, oil demand is expected to rise further. Without effective measures, China's energy security could face serious threats, which may, in turn, hinder the industry’s long-term growth. Automobiles also contribute significantly to pollution. China’s vehicle fuel efficiency is about 30% lower than the global average, leading to both energy waste and increased emissions. A study by the State Environmental Protection Administration found that vehicle emissions now exceed industrial emissions in eight major cities, including Tianjin, Xi’an, and Shanghai. These emissions include harmful particulates and nitrogen oxides, which pose serious health risks, contributing to respiratory diseases being the second-leading cause of urban mortality after heart disease. "In the face of growing energy and pollution challenges, pursuing energy conservation and environmental protection is the only path forward for China’s auto industry," said Ye Ruxuan, vice chairman of the National People’s Congress. This approach not only aligns with the concept of sustainable development but also helps the auto industry enhance its competitiveness and achieve long-term growth. To promote energy-efficient and eco-friendly development, the government must play a key role. First, policies should be developed to address resource saving, energy efficiency, and environmental protection based on China’s economic conditions and environmental capacity. Second, local "car-centric" policies that favor large vehicles should be abolished, while small-displacement cars should be encouraged. Fiscal and tax measures, such as fuel taxes and subsidies, can help restrict high-emission, large-engine vehicles. Improving laws and regulations is also essential. Experts like Xu Xiaodong and Guo Guorong point out that current regulations lag behind the rapid growth of the auto industry, especially in areas related to energy conservation and environmental protection. While filling these gaps, stricter enforcement of existing standards, such as emission rules and fuel quality requirements, is crucial. Consumer behavior plays a vital role too. Liu Junhai from the Chinese Academy of Social Sciences notes that many people still view small-displacement cars as uncool, limiting the market for energy-efficient models. To change this, the government should lead by example, promoting sustainable lifestyles and discouraging excessive consumption. Looking ahead, new energy vehicles are considered the future. Ma Songde, deputy minister of the Ministry of Science and Technology, emphasized the need to develop alternative fuels, hybrid vehicles, and hydrogen fuel cell technology. During the “10th Five-Year Plan,” China made progress in hybrid and fuel cell vehicles in cities like Beijing and Shanghai. By the end of 2005, new energy buses and cars were set to hit the roads. While these achievements have drawn global attention, challenges remain. High costs make new energy vehicles more expensive than traditional ones, hindering their widespread adoption. Ma urged broader support from society, businesses, and government, calling for policies such as subsidies and procurement to create a favorable environment for green mobility. *The People’s Daily (December 6, 2005)*

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