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Low-priced Chinese products harm ecological balance

07
Aug '12
‘Made in China’ is a tag that we see almost everywhere these days. The international markets are flooded with cheap products from China, which have gained huge popularity amongst consumers all over the world. However, this increasing consumption of Chinese products is proving to be a rising threat to the environment and resources. 
 
According to US estimates, the American consumers have spent around US$ 700 billion on buying Chinese items in the past few years. Because of the higher consumption of these low-priced products, the enterprises in the countries like US are complaining that the Chinese commodities have affected their local businesses. 
 
On the other hand, the major factors that have contributed to the lower pricing of China-made items are the electricity and fuel costs, which are relatively cheaper as compared to the other countries. Additionally, China does not charge any resource tax over mineral products, so the energy price is very low.
 
Experts believe that the low-cost of production by the Chinese manufacturing units is harming the local ecological environment and depleting natural resources. So, to ensure sustainable development in China, and to avoid the exploitation of Chinese resources by foreign enterprises at lower costs, the Government must increase its own resource taxes.
 
They also suggest that the Chinese enterprises should also agree to increase their product prices closer to real price levels.
 
Analysts say the transition can only be possible if the Chinese Government quickly implements laws and regulations to adjust the price of domestic production factors, which will further affect the price of export materials.
 
Such a change would force Chinese manufacturers to upgrade their products and enhance China’s industrial structure, as well as lower the high pollution levels in the country, they add.
 
Amidst all these factors that are wreaking havoc on China’s overall development, there are still some rays of hope, as was seen through the collective debut of China-made apparels on the Olympics stage in London this month. This debut marks the Chinese textile industry’s gradual development towards international high-end competition.
 

Fibre2fashion News Desk - China


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