In the last 6 months, China’s energy consumption far outstripped all predictions, causing great concern to the Chinese government as national energy efficiency goals may not be met. Now look at the response according to the NY Times article “In Crackdown on Energy Use, China to Shut 2,000 Factories.” My concern, however, is that no programs to close manufacturing and energy facilities will offset the increased energy demands of the Chinese consumer population.
August 9, 2010
In Crackdown on Energy Use, China to Shut 2,000 Factories
Posted by Jason J. Czarnezki under China, Climate Change, Consumption, Energy, Environment, Law1 Comment
JASON J. CZARNEZKI 
August 10, 2010 at 9:13 AM
China allows their currency float marginally against the dollar in a small concession to us, thus making their products relatively more expensive to US consumers.
China closes inefficient plants…thus driving the price of products up and negating the rise in prices due to floating the value of the currency. Net effect on their balance of trade…neglible.
China is sitting on $1 trillion of US/Western currency and can afford the modernization of old plants, construction of new plants and the dislocation of workers when combined with authoritarian/repressive political/economic/social control.
Net effect…a win for China all the way around.
Stephanie Mcnealy
http://www.famous-philanthropists.org
Customer Service Team