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¥55 Million Environmental Damage Bill for Jiangsu Polluter

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A Jiangsu provincial court has ordered an enterprise in Taizhou to pay a whopping ¥55.14m for “environmental restoration”, due to its role in environmental damage. Other similar cases across the country since show the government is coming down hard on those who pollute the most.

According to the China Daily, clean-up costs are now being borne by major enterprises around China caught damaging the environment the most, noting that any previous “practices of local governments covering the cost of pollution will be history from now on”.

The report notes that, “China piloted environmental public interest litigation in 2015 to enhance the efficiency of the litigation, and lower the costs of bringing a case against polluters”, finally lifting government and taxpayers out of a heavy financial burden with regard to the country’s war on pollution.

So how are companies predicted to react to such economic pressure? “As President Xi Jinping’s government intensifies the fight against the country’s huge environmental damage problem, companies are scrambling to adapt to tighter regulation while investing in cleaner energy”, says South China Morning Post.

“In industries from steel to textiles and consumer goods, the resulting shakeout has left the survivors with far more pricing power. That in turn is reinforcing the already-resurgent factory prices that contribute to global inflation.”

As already observed by a number of large production companies in China, rising labour costs and more government pressure put on factories to raise standards, not even to mention this latest environmental damage bill, mean that production costs are set to become ever-more expensive. China will certainly no longer be known as the world’s factory.

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