China’s pollution: The desolation of smog?

China’s pollution: The desolation of smog?

Beijing’s mayor has come up with a series of measures – including banning all heavily polluting vehicles to punishing officials for lax enforcement – to battle air pollution in China’s capital.

By Sui-Lee Wee, Reuters / January 17, 2014

Beijing‘s mayor pledged Thursday to cut coal use by 2.6 million tons and set aside 15 billion yuan (2.4 billion dollars) to improve air quality this year as part of the city’s “all-out effort” to tackle air pollution, according to China‘s state news agency Xinhua.The announcement by Beijing’s Mayor Wang Anshun, came as the capital was blanketed in its worst smog in months.

An index measuring PM2.5 particles, especially bad for health, reached 500 in much of the capital in the early hours.A level above 300 is considered hazardous, while the World Health Organization (WHO) recommends a daily level of no more than 20.

Coal-burning boilers inside Beijing’s fifth ring road – covering the built-up area of the city – will be eliminated and measures taken against coal burning in the capital’s periphery, Wang told Xinhua.

The city also aims to ban all heavily polluting vehicles this year, cut new car registrations and promote new energy vehicles, Wang said.
Beijing reported 58 days of serious pollution last year, or one every six to seven days on average, Zhang Dawei, director of the Beijing Municipal Environmental Monitoring Center told Xinhua.

China had shut down 8,347 heavily polluting companies last year in northern Hebeiprovince, which has the worst air in the country, as the government moves to tackle a problem that has been a source of discontent, according to, Xinhua.

Local authorities will block new projects and punish officials in regions where pollution is severe due to lax enforcement, Xinhua cited Yang Zhiming, deputy director of the Hebei provincial bureau of environmental protection, as saying.

High pollution levels have sparked widespread public anger and officials concerned about social unrest have responded by implementing tougher policies.
Based on statistics published monthly by the Ministry of Environmental Protection, Xinhua said that Hebei, the country’s biggest steel producer, is home to as many as seven of its 10 most polluted cities.

Pollution in Hebei often spreads to neighbouring Beijing and Tianjin.Some small high-polluting plants are being relocated to remote areas to avoid oversight, Zhiming told Xinhua .He added the government would “beef up the industrial crackdown”.

China has drawn up dozens of laws and guidelines to improve the environment but has struggled to enforce them in the face of powerful enterprises.

On Wednesday, China’s commercial capital, Shanghai, introduced emergency measures, allowing it to shut schools and order cars off the road in case of severe smog.Hebei plans to slash crude steel output by 15 million tons in 2014 and cut coal consumption by the same amount as part of anti-pollution measures.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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