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China To Close 2,000 Factories In Energy Crackdown
Hugh Pickens writes "The NY Times reports that China's Ministry of Industry and Information Technology has published a list of 2,087 steel mills, cement works and other energy-intensive factories required to close by September 30 after discussions with provincial and municipal officials to identify industrial operations with outdated, inefficient technology. The goal of the factory closings is 'to enhance the structure of production, heighten the standard of technical capability and international competitiveness and realize a transformation of industry from being big to being strong,' the ministry says. The current Chinese five-year plan calls for using 20 percent less energy this year for each unit of economic output than in 2005 but surging production by heavy industry since last winter has put in question China's ability to meet this target. In addition to the energy-efficiency objective in the current five-year plan, a plan announced by President Hu Jintao late last year called for China to reduce its carbon emissions per unit of economic output by 40 to 45 percent by 2020, compared with 2005 levels."
The $€£ is still king.
No sig today...
Or they're saying they don't like where the economic optimum will take them (i.e. inefficient factories burning massive amounts of energy in a period of rapid growth in energy demand), and would prefer to pre-empt the energy crisis this would create by intervening now.
The alternative is to leave these factories alone. What happens then?
1) China can't increase energy production fast enough to meet demand.
2) Energy prices increase.
3) New, more efficient factories gradually enter, taking over the business of the inefficient factories as they are forced out by rising energy prices.
4) Meanwhile, the increased energy prices affect the rest of the economy, slowing economic growth and raising prices for consumers.
This way is better, because they're creating room for the competition without waiting for the energy price to do it for them. This will reduce the consequences of future energy shortages on the rest of the economy, and accelerate the adoption of more efficient technology in heavy industry.
Salocin.com
And no doubt you expect it to 'lead' by eliminating the pesky 'free' part, just as China does.
Well, signing up to initiatives like Kyoto would at least be a start.
Its very shortsighted of us in the west to give this whole area of development to the Chinese. As they get more efficient and starts getting good at using alternative energy we in the west will still fight about oil, coal and other forms of non renewable energy.
The future lies at the feet of whom have energy in wast amounts. If China wins this race, they win in the long run. I wouldnt be surprised if we end up paying royalties to China for their technology instead. Some politicians cling to the idea that the west will supply the brains and the rest of the world will pay.
Our greed comes back to bite us over and over.
HTTP/1.1 400
but China could have simply raised the tax on energy to push those inefficient industries out of business -- either because they rely on cheap energy (concrete) or because they're being out-competed by more efficient factories elsewhere (outdated, inefficient technology). Places with the $€£ could most certainly increase the tax on various energy sources to generate the same factory-closing result. It would have other results as well (everyone consuming less energy, a redistribution of wealth, etc etc) which may or may not be attractive for a given populace.
So yeah, the implementation of their policy reflects statism vs. democracy. The policy goal itself (reduce energy to GDP ratio) could certainly be attained by a democratic nation with democratic policies -- using taxation or carbon pricing.
Support a few technologists in Washington.
Guess there are some real advantages to a oligarchy over a democracy.
I'll pass.
I want peace on earth and goodwill toward man.
We are the United States Government! We don't do that sort of thing.
Agreed with one exception: In Monopoly, the bank can't win.