Is China Using Climate Targets To Reinvent Its Economy According To The Maoist Commandant? – Is it good?
Guest essay by Eric Worrall
Atlas Shrugged Steel Uniform Plan Responds to China’s Climate Policy.
Climate change: China’s new five-year energy efficiency targets to spur heavy industry consolidation, analysts say
Higher energy efficiency bars have been set for companies in sectors ranging from oil refining to smelting non-ferrous metals according to a circular released on Friday.
New policies will ‘amplify growing trend’, analyst says
Eric Ng
Published: 4:30 pm, February 14, 2022Beijing’s announcement of 5-year energy consumption reduction targets for 17 energy-intensive industries to promote reduce carbon dioxide and other pollutants will drive industry consolidation, analysts say.
According to a joint circular published on Friday by regulators that oversee industrial development and environmental and energy policies, higher energy efficiency bars have been set for companies in the region. fields from oil refining to smelting non-ferrous metals.
For example, steel, cement, coal into chemicals, smelting aluminum – among The country’s biggest carbon dioxide emitters – all must meet certain minimum standards by 2025. Currently, about 20 to 40% of their capacity fails to do so.
Companies with energy efficiency below the minimum standard are encouraged to install advanced equipment and adopt new technology such as waste heat recycling, according to the circular, issued by the governing bodies. National Development and Reform Commission (NDRC).
It added that difficulties in meeting these standards ahead of time must be eliminated through market-based means.
Analysts say they expect the biggest players to gain market share from phasing out the weakest players.will not have the financial resources to upgrade the facilities needed to avoid the shutdown.
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Red tape is always bad for small companies. Large companies can afford to maintain large-scale compliance departments. Of course, the big companies are well aware that red tape is their friend. Whatever harm they suffer from additional compliance is far outweighed by the commercial advantage that makes small companies unviable over small companies that always threaten generous profit margins. their.
A handful of already well-connected insanely rich Chinese will make even more money from this abusive climate policy. Of course, the beneficiaries in the magic circle are likely to reciprocate the favor, by strictly complying with government directives – a situation almost indistinguishable from an economy. old Maoist-style command, which the government calls all shots.
The enrichment of a few will cost the Chinese economy as a whole. Eliminating small players will reduce the downward pressure on the beneficiaries of this policy. But smaller players, who have spent decades building their businesses and not interested in politics, will be the real victims. They will all be forced to sell off, for a fraction of the true value of their businesses.
If this blatant looter’s charter is typical of what’s happening in China today, its macroeconomics may be weaker than it seems. A Soviet-style collapse was more likely than I realized. Left unchecked, looters would burn produce, until they ran out of people to loot. Then one day, like a tree rotting in a storm, China’s economy will collapse on its own.
All thanks to greed and climate goals.
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