Did you know, that about 750,000 people a year die prematurely in China because of air and water pollution?

And according to an article written in The New York Times on 7th April this year it added that researchers estimated that pollution would cost China as much as 5.8% if its gross domestic product.

5.8%, hmm doesn't seem like a substantial amount....does it...

WRONG!

With regards to China's GDP, 5.8% makes up to about US$160...bln...a year.

Singapore's GDP for 2006 is S$210 bln....about US$138 bln.

China's booming economy has now caused major cities to be choked in a cloud of smoke.

And it is now scrambling frantically to clean up and keep it clean enough for next year's Olympics.

Here are some of the measures according to an article in The Wall Street Journal on 4th July 07:

1)Plans to ban a million cars next month for a two-week test trial to control smog
2)Banned coal-burning furnaces and relocated power plants and steel mills outside of downtown, which not to mention costs billions.
3)Pledge to keep pollution levels down

If China is seriously tackling its pollution issue it may spell trouble for the economy

1.Car ban- important mode of transport, convenient
2.Relocation of plants and mills –cost money
3.Pledge-production levels have to be adjusted, okay, reduced

This may very well be a stint just for the Olympics.

If that were so, I feel China should seriously reconsider and start taking pollution issues seriously.

But if they decide that a booming economy is worth the sacrifice then think about it.

With so much speculation as to when the country's economy may burst it can't be that far away.

And where does that leave China if and when it happens?

Do log on to investorcentral.blogspot.com to leave your comments on whether China is seeking pollution solutions just for the Olympics and your thoughts on pollution vs booming economy.


Yeo Sue En

Labels: beijing olympics, burst, car ban, China Eastern, gdp, pollution, The New York Times