Nobel Peace Prize co-winner Al Gore needs to rename his renowned million powerpoint presentation to "The Inconvenient Truth about China".
While the media and procedure establishment are preoccupied with global warming issues that may have prominent consequences in 50 years or may be vastly overstated, an environmental disaster exists in China right now. This considerable challenge, however, is also a major chance for the Chinese leadership and American business.
News From China
To get your attention, below is just a just sampling of facts drawn from various sources together with an exquisite description by Elizabeth cheaper in Foreign Affairs.
o China is the world leader in air and water pollution.
o Sixteen of the most polluted cities in the world are in China.
o According to World Wildlife Fund, China is the largest polluter of the Pacific Ocean.
o 2/3 of China's largest 660 cities face a water shortage right now.
o The Epa estimates that 25% of the particulates hovering over La create in China.
o In converting coal into energy, America is six times more productive than China, Japan is seven times more productive and India is three times more efficient.
o About 190 million habitancy in China are sick from contaminated water.
o Netherlands' Environmental group states that China is the world's largest contributor of Co2.
o A World Bank/China Government joint study estimates that about 750,000 infants a year face premature death due to respiratory disease.
o Chinese experts believe that only about 10% of China's environmental laws are consistently enforced.
Clearly, decisive and immediate activity is necessary. It requires three major ingredients.
The first, and by far most important, is a major convert in thinking on the part of the Chinese leadership. Of all people, I am a believer in economic increase but it has to be balanced against damage to the environment. For the most part, Chinese environmental laws and regulations are already on the books, they just need to be strictly enforced.
This means giving local and regional administrators more independent authority, something that the leadership is uncomfortable with given their top down, authoritarian bent. It also requires a convert in its "economic increase at all costs" attitude.
Secondly, cleaning up China's environment will want big bucks. No qoute here in light of huge China's .3 trillion in foreign transfer reserves. Setting aside 0 billion over the next three to five years should help enormously.
Thirdly, this environmental initiative will want technology and expertise. This is where American business, the global leader in environmental technology, comes into the picture. Congressional pressure on China regarding growing U.S.-China trade deficits is great and growing. Giving American firms the lead in helping China to address environmental issues will help the Chinese leadership to show its citizens that it is taking concrete activity while at the same time sharply reducing trade tensions and imbalances.
The environmental challenge in China is daunting but procrastinating will make it ever the more unmanageable. American enterprise is ready to saddle up and help wherever it can.
If all this happens, the following Etf baskets of American businesses could directly advantage if they have the foresight to go after opportunities in China.
PowerShares WilderHill Clean power portfolio (Pbw)
PowerShares Cleantech (Pzd)
Market Vectors Environmental Services (Evx)
Claymore/Lga Green (Grn)
PowerShares WilderHill Progressive power (Puw)
First Trust Nasdaq Clean Edge U.S. Liquid (Qcln)
Market Vectors Nuclear power (Nlr)
The Inconvenient Truth about ChinaTags : todays world news headlines
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