Slashdot Mirror
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close by September 30 after discussions with provincial and municipal officials to identify industrial operations with outdated, inefficient technology.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."
Not necessarily. China has enough investment in US bonds that they really have a lot of control over the USD valuation. They could manipulate the exchange rates by periodically selling blocks of bonds at a very low price, dropping the USD and raising the yuan.
They wouldn't though since they only very recently decided the yuan should have a higher value at all, let alone reducing the USD. The only reason manufacturing has been moving to china at all is because the yuan/USD exchange rate was favorable. If the yuan goes up or the USD goes down, they won't see as much trade with the US.
As corny as it sounds, we're in this together. China needs the US to succeed so we don't stop buying shit from them or default on our bonds. Like a junkie, they keep us just happy enough to keep giving them money or at least borrowing money from them.
You can't legislate goodness. Let each to his own destiny, by will of his freely made choices.