published by: China News Digest, Thursday, December 28, 1995

[CND, 12/27/95] -- Rumors that the city government of Beijing would increase car registration fees and cut the quota for new car licensing in the beginning of 1996 have in recent weeks rushed potential car buyers to the car salesrooms around the city, and an official said the central government would oppose such a car fee hike, AFP reported on Monday. JIANG Lei, a senior official with the ministry of machinery industry, said his department had urged the central authority to ban arbitrary hike of fees for car sale. Jiang did not deny the rumors, but said the ministry "would object" such a move. The central government concerns that other cities would soon follow Beijing's move, which would further damage the country's automobile market.

(Weijun LIU; Daluo JIA)