China could be key to hybrid revolution, but...

Only $38,000 in China

We've all heard it before. The future of the automarket will be determined by Asia, especially China and India. Unfortunately, even as the automarket begins to emerge, China is already the world's largest polluter, and if the Chinese start embracing the automobile as do Americans, that pollution will increase exponentially - as will Chinese foreign oil dependency.

Thus, automakers are showing off their hybrid cars at this year's Beijing Auto Show. According to the WSJ, GM CEO Rick Wagoner believes that China could be the key to effective economies of scale for hybrid vehicles.

Still, the Chinese government will play a big role. Hybrids, such as the Toyota Prius and the Honda Civic hybrid, are being sold in China, but at almost twice the cost as in America, largely because of government duties.

Without government intervention, gas-guzzler sales will boom in China, as hybrid sales falter. That can't be good for either China or the world.