China: Growing Industry and the Environment

The New York Times has produced and interesting online series called "Choking on Growth" (found here:http://www.nytimes.com/interactive/2007/08/26/world/asia/choking_on_growth.html). It details the various environmental problems China is facing because of it's large population, and rapid industrial growth.

Even if one does not believe that climate change is either caused by man, or a threat to humanity, it is hard to dispute that in a world with limited recourses business and industry must become more innovative to stay profitable. While it may seem unreasonable to ask this of a less developed/growing economy, I wish that China would start implementing more environmentally friendly policies and practices. I understand that this would cut into their productivity and take away from their manufacturing advantage created by a cheap labor force. I, however, have two reasons why I feel they should. First, pollution is already cutting into their productivity. I've seen several estimates of and annual GDP loss placed between 3-5% due to pollution. That's a large chunk for anyone, but particularly for a state aiming at 10% growth annually. Second, it is a chance for China to show itself as a world leader. Sure, this could be accomplished by growing an economy as quickly, and by any means possible. Or it can be done by a large industrial nation that is most powerful in the world's economic center.