China’s War On Air Pollution Causes Major Chemicals Shortages

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CHINA is quite literally going to war against air pollution as tries to tackle a health crisis that causes some 1.6m deaths every year. The end-result is major shortages up and down many chemicals value chains. The environmental campaign is in lock-step with wider economic reforms. Economically inefficient low value manufacturers that will hinder China’s attempt to escape its middle-income trap are often also heavy polluters. So shut them down and you kill two birds with one stone. Plus some of these companies are “zombie companies” as they are having to borrow more money to pay existing debts. So shutting them down helps China deal with its debt crisis.

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