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More Chinese Plan to Buy Private Cars This Year

A growing number of Chinese are buying their own cars after buying their own homes, and the price of cars has fallen in the wake of China's entry into the World Trade Organization.

According to a recent sample survey of 22,800 people in 57 Chinese cities, 12 percent of those surveyed plan to buy private cars this year and 29 percent said they would buy cars with bank loans, the North-West Information News reported.

The findings showed that 11 percent of the people interviewed own a private car. Nearly one third of those surveyed bought their car for convenience for traveling and another third bought the vehicle for business.

China will issue policies to encourage people to buy their own cars. The policies are aimed at cultivating a sound auto market and stimulating sales of private cars.

The State Development Planning Commission expects private cars to account for 70 percent of annual auto sales in the country in the next 10 years.

The survey also showed that a quarter of the respondents have their own houses, and that 51 percent of the home-owners bought the houses to expand their living space, and 10 percent made the purchase for leasing and other purposes.

(People's Daily January 24, 2002)

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