Pollution in China is a major issue with 2008 Beijing Olympics right around the corner
Knowledge@Wharton has an excellent article on the growing pollution problem in China. There is also a recent report that China is failing to meet its environment targets. The media is picking up on this and I think Beijing will do everything it can do before the Olympics to fix it.
Posted on Thursday, January 11th, 2007 at 9:08 pm
In Energy Stocks |
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January 12th, 2007 at 4:23 pm
Key element undisclosed. Metallurgical exports from Peoples Republic of China’s production companies are to be 100% halted. No exports. Such will immediately reduce air pollution. And allow anti-pollution equipment to be installed. USA’s air supply quality in Los Angles, though, no worst than presently in China. Yet Olympics successful completed with few health complaints from athelets out doors events. Equally China’s hosting non crisis.
However, China’s economy functioned before globalization under COMECON quasi-barter. And even with lower exports, domestic demand ample for continued 3% to 6% anuual GDP growth. Higher than during COMECON era. Only Western “services” dependent economies will have downturns. China and India not dependent on Western economies for growing middle income consumers rewards.
January 12th, 2007 at 11:30 pm
You make a good point that halting Metallurgical exports will help. I don’t know anything about so can’t really comment on that. You also make the point comparing Beijing current pollution levels to LA during the 1984 Olympics. I am not old enough to know the pollution levels in LA during that time but my guess is they weren’t this bad. I do feel though that if the current pollution level is not fixed it could affect their GDP growth in the future although not significantly.
January 15th, 2007 at 2:05 pm
Very interesting and insightful. I am of the mind that pollution control in China, including water pollution, will provide tremendous investment opportunities in the next decade. Fuel Tech is a company that I had looked at a while back and that I had sort of forgotten about…you’ve rekindled my interest!
January 15th, 2007 at 4:24 pm
Thanks Charles. I see that you own Suntech Power as well. By the way what do you think about Wind Energy Sector? Any comments on American Semiconductor (AMSC)?