Foreign car company executives dream of hundreds of millions of new vehicles taking to China’s roads. But the big consumer of oil in China is heavy industry, accounting for almost 40 per cent of the total, compared with just 30 per cent for transport. The US, in contrast, burns more than half its oil in vehicles.

China’s currency peg, which curbs appreciation against the dollar, is often cited as a reason for runaway fixed investment in the country’s exporting industries. Yet fuel subsidies are also important. Even after a recent increase in regulated prices, domestic diesel is 20 per cent below market rates, according to Lehman Brothers.