99/03395 Pollution in China: problems, policies and opportunities

Abstract

It is fast becoming common knowledge that China`s massive economic development has resulted in serious environmental problems. For nearly 20 years, China`s central government has made legislative efforts to tackle its pollution problem, but with only limited success. Despite a series of pollution-control laws enacted between 1979 and 1989, public and local support for greening China -- much like support for greening the United States and Europe -- was secondary to the people`s desire to expand the economy. However, the last few years have witnessed a new and serious effort at responsible environmental management in China. The nation has enacted several tough new pieces of environmental legislation designed to reduce pollution and encourage cleanup efforts. Local government officials are successfully balancing economic growth with notions of sustainable development and pollution prevention. Enforcement of discharge standards is at an all-time high as nearly one-hundred thousand polluting firms were shut down in 1997 alone. The enforcement of pollution control standards and the development of projects to reduce existing pollution present many opportunities to foreign investors and developers. US investors with experience in environmental management and pollution abatement technologies can benefit on both sides of China`s enforcement system. First, enforcement of new lawsmore » will force business enterprises to develop and import pollution-abatement technology. Second, enforcement agencies need training and technology to monitor sources of emissions. Further, government spending on large-scale infrastructure projects presents additional opportunities to develop wastewater treatment facilities, urban gasification projects and solid-waste landfill projects. This paper attempts to summarize certain key aspects of the Chinese environmental regulatory system and discuss some of the opportunities for foreign businesses.« less