Even with the taxes, I'd love to see some statistics on their auto usage and gas/fuel/petro usage. I know they have two high speed rail lines getting built and hundreds of other projects that are awe inspiring in this day and age. But the one thing that will affect the US in the present is what their demand for oil is going to be.

Even with the taxes I bet their fuel usage continues to sky rocket. They are in essence, attempting to imitate us Americans and our suburban & SUV lifestyle, which probably isn't feasible. The funny thing the Chinese seem to be much more aware of this problem then us US People.

I doubt these taxes will have much effect on consumption. It's better than nothing; it's more progressive than what we've done in the U.S. thus far; but it still may be too little, too late.

China should give tax incentives for purchasing bicycles, and add another zero to the taxes they've just proposed for each of these size of vehicles.

...and then the U.S. should follow suit.

I think we buy too many cars, too often, and drive them too much. Why don't our cars last 30 years? Why don't we build cars that get 50 mpg and last for 50 years, but cost more than $50,000? People would then have an incentive to think twice before rushing out and buying a car at the drop of a hat, and there would be more of a focus on quality.

Anyways, I digress.

When the average worker in Shanghai makes ~$466 dollars a month, you bet taxes will make a difference in what kind of car people buy!

Garlynn.

Technically... cars are built under two primary concerns. Customer appeal, and cheapness. People want cars at cheap prices ala Ford. People don't pay for cars to last 30+ years like trains, planes and other things.

Cars are THE most expensive form of transportation easy, if they where actually built with more quality (ala BMW, Mercedes) no one could afford one. It wouldn't be a very intelligent business decision or what people want to actually make cars that last 30 years. No one has or would be willing to outlay that kind of cash.

...as for the China should give incentives for bikes... they don't need to. Everyone there practically owns a bike. Remember, they still have a small percentage of car usage in comparison to our numbers even though they have like 4-6x as many people.

As for Americans buying too many cars... yeah maybe, but remember it also keeps over a million people employed at much higher than poverty wages. If we reduced the number there would have to be some serious industrial powers return or be created to build something just to fill that employment gap. We already have enough people that don't want to be educated, that want blue collar work, and can't get it because it's not available.

...as for Justin's comment. damn straight!!! :)

That 5% is a HUGE amount on an SUV, and especially when you're probably barely paying for it as is (like most American's, Chinese are lending/loaning to buy most of these cars/trucks).