For nearly three decades, the South China Expressway Phase I has been a vital artery for Guangzhou, funneling over 100,000 vehicles daily through the heart of the southern metropolis. That era is drawing to a close as the 27-year tolling period is set to expire in August 2026, marking a significant victory for local commuters and logistics firms. This move follows a growing trend across China, where first-generation expressways from the 1980s and 90s are finally hitting their legal expiration dates.
The cessation of tolls on these legacy routes—including the Guangzhou North Ring and the first expressways in Hubei and Hunan—is not merely a bureaucratic formality. It represents the sunset of the 'loan-to-build, toll-to-repay' model that fueled China’s infrastructure miracle during the early Reform and Opening-up era. While this debt-driven strategy allowed the nation to build the world's largest highway network with limited public funds, the law dictates that these roads must eventually return to the public as a non-profit utility.
However, the transition from profit-generating assets to public-service infrastructure is fraught with fiscal tension. National regulations cap tolling periods at 30 years, a threshold many of China's most profitable routes are now crossing. While cities like Shenzhen have used government buybacks to accelerate free access, many provincial governments are hesitant to lose a steady revenue stream. The challenge is exacerbated by the astronomical costs of maintenance, which do not disappear once the toll booths are dismantled.
To circumvent these expirations, some local authorities have turned to 'renovation and expansion' projects, effectively resetting the tolling clock by arguing that new investment requires a fresh repayment period. Yet, as China moves from an era of massive expansion to one of systemic maintenance, the central government faces a delicate balancing act. Policymakers must weigh the fiscal health of local governments against the need to lower logistics costs and stimulate the 'internal circulation' of the domestic economy.