• Sun. May 26th, 2024

China’s Green Shift: Balancing Environmental Sustainability and Economic Competitiveness

BySamantha Nguyen

Mar 27, 2024
China’s Economy is Undergoing a Great Transition, Not a Great Decline | articles

The rapid pace of industrialization has always had a heavy toll on the environment, and China was no stranger to this reality in the early 2010s. The country faced a crisis with heavy smog and PM 2.5 pollution that led to major respiratory illnesses nationwide, prompting a shift towards greener growth as a clear policy priority. This move has proven successful in reducing pollution levels and carbon intensity over the past decade.

In response to this crisis, China set two long-term policy goals for greener growth: reaching Peak Carbon by 2030 and achieving full carbon neutralization by 2060. To achieve these goals, the World Bank estimates that significant investment in green infrastructure and technology will be required, totaling USD 14-17tn. While some critics have raised concerns about the potential lower multiplier effect of green infrastructure investments compared to traditional sectors, they are still seen as crucial for productive fiscal policy in China.

Despite these efforts towards green development, some criticisms have been raised regarding industrial policies leading to overcapacity and global market dumping. The solar industry in the 2010s is often cited as an example, with concerns that the current New Energy Vehicles (NEV) industry may face similar challenges. Critics question the impact of Chinese policies on fair competition and the fate of companies that may fail as a result.

However, we believe that these criticisms overlook the broader benefits of China’s approach towards greener growth. Despite some challenges, the country’s efforts are positioning it to be competitive in key industries of the future, which aligns with its broader economic goals. By investing in green infrastructure and technology, China is not only addressing its environmental problems but also preparing itself for long-term success in areas such as renewable energy and electric vehicles.

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

Leave a Reply