This collaborative study between the NRC and the Chinese Academy of Engineering (CAE) addresses the problems facing China in the next twenty years as it attempts to provide personal transport desired by millions of Chinese, while preserving the environment and the livability of its cities. According to Song Jian, president of the CAE, the decision has already been taken to produce a moderate cost family car in China, which will greatly increase the number of vehicles on the roads. This study explores the issues confronting the country, including health issues, the challenge to urban areas, particularly the growing number of megacities, environmental protection, infrastructure requirements, and technological options for Chinese vehicles. It draws on the experience of the United States and other countries and review model approaches to urban transportation and land use planning. Recommendations and policy choices for China are described in detail.