Some multinational companies cause environmental pollution in
China in the pursuit of huge profits, says an article in
Guangzhou Daily. The following is an excerpt:
Recently, the State Environmental Protection Administration made
public the results of its inspection of illegal environmental deeds
committed by 130 multinational companies, and three of them were
found to have violated environmental regulations. According to
another research institute, Research Center of the Public and
Environment, as many as 260 multinational companies have caused
water pollution in China while more than 50 have caused serious air
pollution.
The key reason for the entry of polluting foreign enterprises
into China is that local governments are so eager to attract
foreign investment, they usually neglect environmental standards.
Many multinational companies cherish their reputations as
environmental protectors, but in China, this is not the case.
These companies consume a great amount of resources and reap
huge profits, leaving severe pollution behind.
The fundamental reason for China's overheated economy and
excessive liquidity is that these multinationals have focused on
China's cheap labor force and loose environmental regulations. As a
result, China's trade surplus expands, foreign currency reserves
increase and liquidity becomes excessive.
In fact, 60 percent of the trade surpluses is caused by
multinational companies. The poor environmental law is also to
blame for the excessive liquidity.
Therefore, to protect the environment and ensure healthy
economic growth, we must curb the severe pollution problems caused
by multinational companies.
(China Daily January 15, 2008)