Automotive industry in China ownership is expected to accelerate. China surpassed Japan to become the world's second-largest vehicle market in 2006, and passed the United States to become the largest in 2009. This growth is spurring demand for automotive parts, services, and after-care products. China is presently capable of manufacturing a complete line of automobile products and large automotive enterprises. Major domestic firms include the China First Automobile Group Corp. (FAW), Dongfeng Motor Corp. (DMC) and Shanghai Automotive Industry (Group) Corp. (SAIC). China encourages the development of clean and fuel efficient vehicles in an effort to sustain continued growth of the country’s automobile industry
Environmental issues in China cumulative largest. China has ratified the Kyoto Protocol, but as a non-Annex I country is not required to limit greenhouse gas emissions under terms of the agreement. Various forms of pollution have increased as China have industrialized which has caused widespread environmental and health problems. China has responded with increasing environmental regulations and a build-up of pollutant treatment infrastructure which have caused improvements on some variables. As of 2013 Beijing, which lies in a topographic bowl, has significant industry, and heats with coal, is subject to air inversions resulting in extremely high levels of pollution in winter months. In response