China’s Parking Policy: “Guiding Opinions on Strengthening the Development of Urban Parking Facilities”

To the Development and Reform Commissions, Finance Departments, Departments of Land and Resources, Departments (Commissions) of Housing and Urban–Rural Development, Planning Commissions (Bureaus), Departments (Commissions) of Transport, and Public Security Departments (Bureaus) of all provinces, autonomous regions, municipalities directly under the central government, cities separately listed for planning purposes, and the Xinjiang Production and Construction Corps:

With the rapid advancement of urbanization and the continuous improvement in residents’ living standards, the number of passenger cars in cities has increased significantly. Consequently, the shortage of parking facilities has become increasingly pronounced, encroaching on non-motorized vehicle lanes and other public resources, impeding traffic flow, and hindering further efforts to enhance urban quality and elevate the level of management services. Attracting Social capital Promoting the industrialization of parking is an important approach to addressing urban parking shortages and a key measure for advancing reform and innovation while stabilizing economic growth. To this end, these Guiding Opinions are hereby formulated.

I. Overall Approach

Grounded in the city’s transportation development strategy, this approach integrates dynamic and static traffic management, balancing immediate needs with long-term benefits. It positions parking management as a key tool for demand‑side transportation management, moderately meeting the basic parking requirements of residential areas while strictly controlling on‑street parking for trips. Guided by the goal of advancing the commercialization of parking, it calls for intensified reforms and policy innovation across urban planning, land allocation, financial services, pricing, and operational management, thereby fostering a robust market‑oriented environment, fully mobilizing private capital, accelerating the expansion of parking infrastructure, effectively addressing the shortage of parking supply, strengthening operational oversight to ensure orderly and standardized parking practices, and ultimately enhancing the urban environment.

II. Basic Principles

Adhere to market‑driven operations, leveraging government planning and policy support to accelerate the industrialization of parking in accordance with market‑oriented management principles, with enterprises as the main actors. Uphold reform and innovation, refine management systems and mechanisms, explore diverse cooperation models, and effectively attract social capital. Pursue intensive utilization and potential tapping by encouraging the open sharing of existing parking resources, making efficient use of and fully exploiting urban above‑ground and underground space to develop multi‑level parking facilities. Ensure simultaneous development and management, improve on‑street parking space management, enhance the level of parking informationization, and strengthen enforcement against illegal activities.

III. Scientifically Formulate the Plan

Local authorities, in accordance with urban master plans and comprehensive transportation system plans, adopt a differentiated parking supply strategy—prioritizing on‑site parking, supplementing it with off‑street public parking, and providing on‑street parking as a last resort. They revise urban building‑based parking space standards, develop dedicated parking facility master plans, and promptly integrate these into the city’s land‑use control detailed plans to ensure effective land‑use management. The planning process must comprehensively consider the locational characteristics of urban functional zones, land‑use attributes, and the development of public transportation, accurately estimate parking demand, set clear phased adaptation targets, optimize facility placement, formulate short‑term implementation plans, establish a project pipeline, and make relevant information publicly available in a timely manner.

IV. Clarify Key Areas of Development

Focusing on key areas such as residential neighborhoods, major integrated transportation hubs, peripheral parking‑and‑ride (P+R) stations of urban rail transit, hospitals, schools, and tourist attractions, the plan calls for developing parking facilities through internal capacity optimization and renovation, while also expanding public parking supply in adjacent areas where conditions permit. The construction of compact, high‑density parking solutions—such as multi‑storey parking garages, underground parking facilities, and automated multi‑level parking structures—is encouraged, with electric vehicle charging infrastructure to be provided at a specified ratio and built concurrently with the main project.

V. Encouraging Social Participation

Through various channels, we will broadly attract social capital to invest in the development of urban parking facilities and vigorously promote the public–private partnership (PPP) model. We will encourage enterprises, institutions, residential communities, and individuals to utilize their own land and above- and below‑ground spaces to build parking facilities, allowing them to open these facilities to the public and generate corresponding revenues.

VI. Relaxing Market Access Restrictions

Relevant authorities across regions are refining market access regulations and lowering the entry thresholds for entities involved in the construction and operation of parking facilities, as well as for investment scales. Both enterprises and individuals may apply to invest in and build public parking lots, with no minimum requirement on the number of parking spaces, in principle. The investment, construction, and operational management models for parking facilities are being reformed to remove existing barriers to public participation.

VII. Simplify the approval process

Relevant departments in all cities shall deepen reforms of the administrative approval system, streamline administration and delegate power, transform their functions, and proactively provide services. They should simplify procedures for investment, construction, and business operations, enhance work efficiency, and, in accordance with prescribed time limits and procedures, complete the approval (or ratification) of parking facility construction projects submitted by project owners or investors. For small-scale parking facilities or those built on privately owned land, a filing‑based management system is encouraged. Local authorities are to maximize reductions or exemptions from administrative and public‑service fees incurred during the construction and operation of parking facilities.

VIII. Strengthening the Guarantee of Public Land Use

Local authorities shall ensure adequate land availability; land released through the relocation of functions in central urban areas should be earmarked, to a specified proportion, for the development of parking facilities. Where the land meets the criteria set forth in the Catalogue of Allocated Land, it may be allocated without charge. Where the land does not fall within the Catalogue and there is only one prospective user for a given parcel, it may be transferred through negotiated land‑use rights.

IX. Revitalizing Existing Land Resources

For enterprises, public institutions, residential communities, and individuals that utilize their own granted‑use land to construct parking facilities, the planning authorities shall give full consideration to the rationality of parking demand and process the necessary planning adjustments, including changes to land use designation and floor area ratio. The development of parking facilities in above‑ground and underground spaces of public infrastructure, civil defense facilities, and other subterranean areas is encouraged to enhance the multifunctional utilization of land. Relevant departments shall handle planning and land‑use procedures at the appropriate administrative levels, and the investing and constructing entities shall obtain ownership rights to the parking facilities in accordance with applicable regulations.

X. Innovative Investment and Financing Models

Utilize public resources to develop parking facilities, and encourage the adoption of a Public–Private Partnership (PPP) model, under which the government contributes ownership of public assets and collaborates with private capital to plan, construct, and operate the projects, while safeguarding private investors’ returns through mechanisms such as waiving revenue rights for a specified period. Furthermore, without altering land use or the identity of the land-use right holder, a portion of the building area may be designated for community‑oriented commercial services, with the resulting revenues used to help cover funding shortfalls in the construction and operation of parking facilities.

XI. Strengthen Financial Support

Accelerate the issuance of special-purpose bonds by investment entities for parking‑lot construction; study the establishment of a dedicated industrial investment fund to guide the development of parking infrastructure; and fully leverage the role of development finance by encouraging financial institutions and leasing companies to innovate financial products and financing models to provide support.

XII. Improving Parking Fee Policies

Fully leverage the price‑based incentive mechanism, gradually narrow the scope of government‑set pricing, and comprehensively liberalize fee‑setting for newly built parking facilities wholly funded by social capital. For parking facilities developed through public‑private partnerships, take into account fiscal subsidies, societal affordability, and other relevant factors, adhere to market principles and the principle of reasonable profitability, and allow investors to determine fee levels in accordance with the terms agreed upon by both parties. As for parking facilities subject to government pricing—such as on‑street parking—refine the rules governing government‑set pricing and implement differentiated pricing based on location, facility conditions, and other factors.

XIII. Enhancing the Level of Equipment Manufacturing

Support domestic parking equipment manufacturers in pursuing independent innovation, encourage industry consortia and other collaborative models to advance technological R&D, and gradually raise the level of domestic production for core equipment. Include the parking industry in the list of high-end manufacturing sectors, extend relevant policy incentives, and foster domestically branded equipment. Integrate product quality and after-sales service performance of parking equipment manufacturers into the corporate integrity system, promptly recording any misconduct. Actively guide domestic brands to expand internationally, thereby facilitating the export of competitive, high‑value‑added capacity in the parking sector.

XIV. Promoting Intelligent and Information-Based Parking Management

Localities are accelerating surveys to assess urban parking resources, establishing foundational parking databases that are updated in real time and made publicly accessible for sharing; promoting the development and deployment of advanced technologies such as metered parking systems, intelligent parking guidance systems, and automatic license‑plate recognition systems; strengthening interconnectivity and information sharing among disparate parking management information systems; fostering the integrated development of parking and the Internet; supporting the development and widespread adoption of mobile‑app‑based online parking services; encouraging users to check available spaces and reserve parking spots prior to travel; and enabling automated billing and payment, thereby enhancing the efficiency of parking resource utilization and reducing traffic demand generated by the search for parking.

XV. Strengthen Comprehensive Parking Management

Localities shall concurrently upgrade municipal public facilities and parking guidance systems around parking lots; upon the completion and commissioning of newly built or expanded public parking facilities, on‑street parking spaces in the surrounding areas should be reduced and gradually eliminated, while enforcement against illegal parking is strengthened to ensure effective demand for public parking and enhance revenue levels. Public parking resources, including on‑street spaces, shall be entrusted to operators in a transparent and open manner, with a designated portion of revenues earmarked specifically for parking‑lot development. Parking services and fee‑charging practices must be rigorously regulated, and unauthorized operations, arbitrary land‑enclosure and charging, and other violations shall be firmly cracked down upon.

XVI. Strengthening Organizational Support

The municipal people’s government is the principal entity responsible for the planning, construction, operation, and management of parking facilities. It must attach great importance to this task, encourage the establishment of dedicated parking management agencies, clearly define the division of responsibilities among relevant departments, and ensure effective implementation. Relevant ministries and commissions under the State Council, in light of their respective duties, should formulate and introduce corresponding support policies, strengthen inter‑agency coordination, and work together to advance the development and management of parking infrastructure, thereby safeguarding steady and sound economic growth and continuously and rapidly improving the living standards of the people. To the Development and Reform Commissions, Finance Departments, Departments of Land and Resources, Departments (Commissions) of Housing and Urban–Rural Development, Planning Commissions (Bureaus), Departments (Commissions) of Transport, and Public Security Departments (Bureaus) of all provinces, autonomous regions, municipalities directly under the central government, cities separately listed for planning purposes, and the Xinjiang Production and Construction Corps:

With the rapid advancement of urbanization and the continuous improvement in residents’ living standards, the number of passenger cars in cities has increased significantly. Consequently, the shortage of parking facilities has become increasingly pronounced, encroaching on non-motorized vehicle lanes and other public resources, impeding traffic flow, and hindering further efforts to enhance urban quality and elevate the level of management services. Attracting Social capital Promoting the industrialization of parking is an important approach to addressing urban parking shortages and a key measure for advancing reform and innovation while stabilizing economic growth. To this end, these Guiding Opinions are hereby formulated.