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China's ambitious growth plans unsustainable

By Arthur Thomas - posted Friday, 12 June 2009


There are also the obvious and substantial benefits of foreign exchange earnings, business travel, tourism, and expansion of China's shipping, aviation, service, and new alternative energy industries. There is also the substantial income derived from various government charges.

China's ability to stage the spectacular 2008 Olympics, construct many of the world’s more recent futuristic and grand projects, and to accumulate massive foreign exchange reserves are clear evidence of the massive extent of the rewards; and it brings in to question the “developing nation” status.

Without this foreign direct investment, strategic input, and co-operation, China would still be back in the 1970s, but emitting less CO2.

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An additional factor to take into account is China's ability to produce cheap goods, other than cheap labour.

Despite being fully aware of the implications of failing to protect the environment, China has been reckless in failing to enforce legislation across the board to control gaseous, liquid, and solid waste from its industries. This has been deliberate policy so as to remain competitive in export markets.

Are export consumer goods the major CO2 contributer?

To lay the blame of China's global CO2 emission contribution solely on consumer exports fails to acknowledge the huge CO2 content in China's own massive domestic energy consumption, industrial emissions, and consumer market demand.

While demand from China's domestic consumer base is relatively low in respect to its population, the level of government infrastructure and industrial related growth is the highest in the world, and foreign consumer demand is only one contributor to China's huge level of CO2 emissions.

China's planned growth commitments

China has been open and honest in proclaiming its plans for industrial and urban expansion which are on an unprecedented scale, and key to its goal of becoming the "world's factory".

To comprehend the implications of this expansion requires a clear understanding of China's vision for the future, clearly defined in Five-Year Plans and supplemental programs including the 2008 stimulus package.

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This policy is not just to meet perceived global consumer demand, but more to boost China's own manufacturing base with ongoing substantial foreign exchange earnings.

Two key policies are central to China's future unprecedented CO2 emissions:

  • the world's biggest power generation expansion program; and
  • the world's biggest urbanisation expansion program.
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About the Author

Arthur Thomas is retired. He has extensive experience in the old Soviet, the new Russia, China, Central Asia and South East Asia.

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