The Chinese government is expected to spend 70 billion yuan (8.75 billion U.S. dollars) on buying motor vehicles this year, said an official with the China Machinery Enterprise Management Association.

Zhu Jinping, the association's deputy secretary general, revealed recently that the Ministry of Finance had earmarked 300 billion yuan for government procurement this year, with 70 billion yuan earmarked for vehicle purchases.

Government expenditure on vehicles has grown steadily in the last three years, from 35 billion yuan in 2003 to 50 billion yuan in 2004 and to 60 billion yuan last year.