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Olympic clamps down growth of textile industry
Jul '08
Although Beijing is basking in the glory of celebrating Olympics 2008, many of the companies are paying heavy prices for this ceremony.

Most of industries in China are going from strength to strength for the past few years, but loosing out on environment.

Beijing is considered as the one of the most polluted cities in the world. The city wears a veil with thick smog; thanks to nearby factories belching out pollution. As the country prepares itself for summer Olympics, organizers are paying heed, to the fullest, to clear the pollution over the Beijing sky.

In order to combat the constant pollution, the authorities have ordered a temporary shut down of some of the factories.

Factories in six surrounding provinces and municipalities across northern China have already shut down for a few months in order to clean up Beijing's environment for the Olympics scheduled to open on August 6. Authorities have spent around 140 billion yuan to curb the pollution.

Petrochemical groups operating in the region were asked to cut their production for reducing emission. Most importantly those factories who failed to meet the emission standard, were asked to shut down their operations.

Experts predict that due to such steps, on one hand, businesses will suffer; the economy will also not be spared. The textile industry which is considered to be a major contributor in the pollution is going through a miserable state.

Already the industry is facing difficulties due to rising input cost, and now order of production cut is taking its toll on the textile sector. This situation is affecting the far off countries that depend on imports from China.

Most of the neighbouring nations count on the low priced imported raw materials from China. With most chemical and dye factories closing down for Olympics, importers are facing a serious shortage in supply, and this situation is leading to price hike, which in turn is affecting their profits margins.

So, a doubt arises, will this suppression of production slow down the economy?

Fibre2fashion News Desk - India

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