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All those new cars and no place to park

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Will Hao is well acquainted with a Beijing automobile paradox: the government encourages people to buy cars, but there's hardly room to drive them and almost nowhere to park.

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'Usually it takes me 20 minutes to find a parking space when I go to buy supplies with my girlfriend during weekends,' said Will, who owns both a Honda Accord and a Mercedes-Benz C280. Parking fees have jumped to 10 yuan per hour in places like Xidan, a business district in the second ring, and in Zhongguancun, a shopping area located in the northwest of the fourth ring, he said.

Like others, he often parks his car in nearby neighbourhoods, which can be a long way from his destination. And when there aren't enough parking spaces in the neighbourhoods, it's common in Beijing to see cars parked in bicycle lanes next to the boulevards - the only option for many who live in the city's hutong because there is no room in their narrow alleyways.

Part of the problem is Beijing's eagerness to boost car sales as part of its 4 trillion yuan stimulus package to encourage domestic consumption.

The State Council decided last December to increase the trade-in subsidy for older, higher-polluting vehicles to 18,000 yuan from 6,000 yuan. The government also extended until January 2013 the rural subsidy programme under which villagers can get up to 5,000 yuan to buy a 30,000 to 40,000 yuan car.

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With the incentives, the mainland recorded nationwide vehicle sales of 13.6 million units last year, up about 45 per cent from 2008's 9.38 million units. This made China the world's leader in car sales on a unit basis.

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