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"In China, size matters," says Zhang, the 44-year-old founder of a media and graphic design company. "People want to have a car that shows off their status in society. No one wants to buy small." Zhang grasps the wheels of his Hummer, called "hanma" or "fierce horse" in Chinese, and hits the accelerator.
Car ownership in China is exploding, and it's not only cars but also sport-utility vehicles, pickup trucks and other gas-guzzling rides. Elsewhere in the world, the popularity of these vehicles has tumbled as the cost of oil has soared. But in China, the number of SUVs sold rose 43 percent in May compared with the previous year, and full-size sedans were up 15 percent. Indeed, China's demand for gas is much of the reason for the dramatic run-up in global oil prices.
China alone accounts for about 40 percent of the world's recent increase in demand for oil, burning through twice as much now as it did a decade ago. Fifteen years ago, there were almost no private cars in the country. By the end of last year, the number had reached 15.2 million. There are now more Buicks -- the venerable, boat-like American luxury car of years past -- sold in China than in the United States. Demand for Hummers has been so strong that starting this year, Chinese consumers can buy a similar military-style vehicle called the Predator at more than 25 new dealerships.
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But starting in 2000, China began to aggressively promote consumption to balance its export-driven, white-hot economy. Zeng Peiyan, who was then director of the national planning committee, created a list of things average citizens should be encouraged to buy. At the top of that list was cars. Beijing has simplified procedures for buying cars, cut sales taxes and improved the availability of bank loans. It encouraged local governments to build more parking areas. It banned bicycles on some larger streets. And it laid thousands of miles of gleaming, multi-lane superhighways around the country. In the meantime, gas has been kept artificially cheap. Even after subsidies were partly lifted last month, a gallon of gas in China costs only $3.40, well below market prices. Some Chinese cities actually promote bigger, fancier cars to help foster the image of a more "wenming," or civilized, modern society.
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http://www.washingtonpost.com/wp-dyn/content/article/2008/07/27/AR2008072701911.htmlWe. Are. Fucked.