On a toll-free investment road to nowhere in China

The mainland's new toll-free policy has not only created widespread traffic jams on the country's highways over the National Day break, but will also deter investment in highways, casting further uncertainty over Beijing's aggressive road-building plan to reignite the slowing economy.

Beijing launched the nation's first toll-free period at midnight on Sunday, the start of the Mid-Autumn Festival holiday, waiving highway tolls for cars with seven or fewer seats. The levies will be lifted on 20 annual holidays, including Lunar New Year and the Ching Ming festival.

According to the State Council, the idea behind the policy is to increase road usage and cut travel costs during holidays. The Ministry of Transport estimates motorists could save as much as 30 per cent of their travel costs by driving to their destination.

"The policy will [also] alleviate transport shortages during holidays," Luo Ping, from the National Development and Reform Commission's (NDRC) Institute of Comprehensive Transportation, told Xinhua.

Whatever its virtues, the toll-free policy certainly brought more traffic. Barely three hours after it came into effect, cars began to back up on expressways throughout the Pearl River Delta, Xinhua said. The traffic jam was as long as 20 kilometres on one stretch between Shenzhen and Guangzhou and 28 kilometres between Shenzhen and Humen. The Ministry of Public Security said expressway usage was up by as much as 40 per cent on some freeways on Sunday compared to the same time last year.

China has the world's second-longest road network behind the United States and ahead of Europe, and tolls are collected on many of its roads.