Guest essay by Eric Worrall
Atlas Shrugged Steel Unification Plan meet Chinese Climate Policy.
Climate Change: China’s new five-year energy efficiency targets to drive heavy industry consolidation, analysts say
Higher energy efficiency bars have been set for companies in sectors ranging from oil refining to non-ferrous metals smelting by a circular published on Friday
New policies will ‘amplify the trend of the strong getting stronger’, analyst says
Published: 4:30pm, 14 Feb, 2022
Beijing’s announcement of five-year energy consumption reduction targets for 17 energy-intensive industries to drive the reduction of carbon dioxide and other pollutants will spur industry consolidation, analysts said.
According to a joint circular published on Friday by regulators overseeing industrial development and environmental and energy policies, higher energy efficiency bars have been set for companies in sectors ranging from oil refining to non-ferrous metals smelting.
For example, steel, cement, coal-to-chemicals, aluminium smelting – among the country’s biggest carbon dioxide emitting industries – must all meet certain minimum standards by 2025. Currently, some 20 to 40 per cent of their capacity fails to do so.
Companies whose energy efficiencies are below the minimum standards are urged to install advanced equipment and adopt new technology such as recycling of waste heat, according to the circular, which was issued by regulators led by the National Development and Reform Commission (NDRC).
Those that have difficulties meeting these standards before the deadline should be phased out through market-based means, it added.
Analysts said they expected the biggest players to gain market share from the phasing out of the weakest players, which will not have the financial resources to make the facility upgrades needed to avoid shutdowns.
…Read more: https://www.scmp.com/business/article/3166968/climate-change-chinas-new-five-year-energy-efficiency-targets-drive-heavy
Red tape is always more harmful to small companies. Big companies can afford to maintain large compliance departments. Of course, large companies are well aware that red tape is their friend. Whatever harm they suffer from additional compliance is vastly outweighed by the commercial advantage of making life impossible for small firms which keep threatening their generous margins.
A handful of well connected already insanely rich Chinese people are going to make even more money thanks to this abusive climate policy. Of course, beneficiaries in the magic circle will likely be expected to return the favour, by complying utterly with government directives – a situation which would be almost indistinguishable from an old style Maoist command economy, in which the government calls all the shots.
The enrichment of the few will come at great cost to the broader Chinese economy. Eliminating small players will reduce pressure on the beneficiaries of this policy to cut prices. But the smaller players who spent decades building their businesses, and stayed clear of politics, will be the real victims. They will all be forced to sell up, for a fraction of the true value of their businesses.
If this blatant looter’s charter climate policy is typical of what is happening in today’s China, their macroeconomy might be weaker than it appears. A Soviet style collapse is more of a possibility than I realised. Unchecked, the looters will burn through the productive, until they run out of people to loot. Then one day, like a rotten tree in a storm, the Chinese economy will collapse in on itself.
All thanks to greed and climate targets.
Which is one of the main reasons why leftists are so in love with lots and lots of regulations.
No one ever wonders why car companies so readily accept regulations. It cuts down on the competition.
If all car companies have the same regulations to follow it does not make any one company more or less competitive. Car companies will pass the costs on to consumers so the regulation effectively costs them nothing.
In many other cases, big companies like to use regulation to stifle competition. Take the push for $15 minimum wage. Big companies can afford that, smaller companies usually can’t.
It cuts down on new competition
Maoist command economy = crony capitalism.
There is nothing capitalistic about “crony capitalism”. The instant you start using government you leave the realm of capitalism and enter the realm of socialism/communism.
Yes, let’s call it by it’s correct name, crony communism ie Fascism. Not of course true Communism, as the state doesn’t own the means of production outright, but it demands the “independent” businesses do what it tells them to do. Mussolini would totally approve.
Maoism is a form of communism. There is no sort of capitalism involved. The current Chinese economy is more fascist than communist. Some people incorrectly believe fascism is a type of capitalism. Those people are wrong.
The economic system of Fascism is called corporatism. Developed by Salazar in Portugal and subsequently adopted by Mussolini.
Butthurt 🙂 FYI the “West” has been predicting a Chinese collapse for decades.
Well, the backbone of the Chinese economy is (and has been) state owned, including these firms. So no.
This is a particularly stupid reading of the new regulation. Because they expect improved efficiency. And the Chinese are known to deliver on these types of expectations. Unlike the West, see California High Speed Rail or whatever.
They also predicted the collapse of the Soviet Union for decades prior to it happening.
Collapse is what communism always does. The only question is when and how many get taken down with it.
BTW, I just love how you excuse the leaders of China getting insanely rich.
Improved efficiency from government regulation? Is there anybody there who is actually stupid enough to believe such nonsense?
Yes, people believe government can regulate improved efficiency into existence. They go by many names but let’s just call them democrat voters.
The Democrats in Congress here in the USA told us we needed to spend heaps of dollars on programs in a “Build Back Better” legislation proposal. Last week I saw a bumper sticker that stated “Settle for Biden” and wonder how their servants feel about the cost of living these days.
“ Is there anybody there who is actually stupid enough to believe such nonsense?”
And US politicians are insanely poor. Lobbying is considered a good thing in the US. It’s considered corruption and bribery anywhere else. I would shoot the recipients and the donors and confiscate all property. You will probably dismiss my comment because you think I’m a CCP mouthpiece.
That is from von Hayek mumbo jumbo ‘economics’, and is the Mighty Wurlitzer here. Professor von Hayek of the London School of Economics has fanatical US followers, Senators, and sundry others here.
When one finds the Hayek ediface is built on a Fable of the Bees (no kidding, quote) one has to laugh out loud. Anyone who believes the stuff has a bee in their bonnet!
Ah yes, any form of economics that actually works must be rejected in favor of socialism and communism which has never worked, but makes those who run it feel good about themselves.
Fascinating. In your totalitarian world, people telling politicians their concerns is a crime punishable by death.
I guess politicians shouldn’t care what the people want.
Yep the china will deliver efficiency right there on the back of various human rights abuse and you greentards will cheer them on.
You obtained that information from the MSM. Go boy/girl.
Ah yes, China and Russia are perfect and anyone who says differently is mentally defective.
The interest payments alone on the debt that the USA owes China is funding China’s entire defense budget.
Remind me which of those two countries is the emerging success story and which one is not so much.
As long as the Communist control the people of China they are fine. They dealt with Hong Kong so swiftly by bringing out the virus that nobody talks about a free Hong Kong anymore. Up next Taiwan.
Actually, it looks more like Mussolini’s corporate state in retaining nominally private management, but “managing” the economy centrally.
of course, all varieties of socialism tend to blend into the same behaviors.
Read a good book, “Travelers in the 3Rd Reich”
Letters and such from people who visited Germany from 1920-45.
Most couldn’t tell much difference with the Soviet Union
And that differs from US policy in what ways persactly?
A cynic might reasonably argue that China paying a bit of lip service to the IPCC mantra might further encourage Western nations to continue down the path of economic self-immolation by making energy progressively more expensive.
Under democrat control and the deep state, none at all.
Except that they don’t have total control. They absolutely want total control. But they don’t have it yet.
They only need enough.
Consider what OSHA, FERC, EPA, and long list of other market regulators have done to f up this country.
I find it hard to believe the CCP really worries about climate change. I think this is a convenient excuse to drive out the remaining independent businesses and re-institute the command economy, albeit under a national socialist model.
I don’t think they do worry.
Their climate models are amongst the most accurate and project warming right at the bottom of the range.
“…old style Maoist command economy…”? I believe what you are describing was once called Fascism – private property is allowed so long as it obeys each requirement of a dictatorial central government.
And bribes are properly distributed to the “right” people.
“I believe what you are describing was once called Fascism – private property is allowed so long as it obeys each requirement of a dictatorial central government.”
China (and Russia) may well have been going to eat our lunch even if the West hadn’t come down with climate meningitis, gender bender neurosis and delusions of global governance of the Elite. We’ve wasted $trillions in financial, human and matériel resources on stuff that was scrap on the drawing board. We’ve de-educated the entire Western Block K to12 to asterisked PhDs.
We will need a Manhattan project to straighten all this out but where to find the talent for the job?
The most important first step is to eliminate all government funded “overhead” jobs including all the “social work” make work programs that Build Back Better and Defund the Police intended to add to. All democrat spending is meant to employ their college degree bearing liberal crones at make work jobs and pay their other voters not to work.
Anyone with, what we called in the 70s, a basket weaving degree, can go weave baskets, drive Uber or dig ditches, but NOT make $60,000 or more a year for NO societal gain.
Once the basket weavers are added to the workforce we will no longer need all the illegal aliens to do the menial jobs.
A Manhatten Project for what, exactly? I’m not sure what problem you’re trying to solve, but government programs are usually the most wasteful and inefficient way to solve anything. We no longer have the ability to solve problems in a few years like we did in the 1940’s.
Not true – see my post above.
Completely true. It took more time and more money (adjusted dollars) to create the ObamaCare website than it did to plan and conduct the Normandy invasion (Operation overlord).
Government is not the solution. We’ve wasted billions and billions of tax dollars on the green energy boondoggle.
Completely true. Always has been and always will be.
Exactly – with the Manhattan Program like the TVA forerunner, there was no available expertise. It was then very quickly developed!
With JFK’s NASA Apollo Program, neither the motors, nor fuels existed, nor management techniques for 400,000 staff. It was developed quickly. The Chips we use to chat here were lighter than Triodes!
We need a Fusion Manhattan Program now! This time around there are many private outfits with highly skilled people. We have a huge advantage – check :
I think people knew how to make dams, install generators and put up power lines before the TVA.
You don’t seem to have kept up with history. Yes, we did a lot of great things that the government had a hand in. That government does not exist anymore. Pushing paper and filing forms have replaced “can do.”
Private companies are now outperforming NASA when it comes to manned spaceflight.
BTW – Hayak was a genius of economics.
I just love how totalitarians assume that just because government does something, that proves the private sector couldn’t.
BTW, computers existed prior to NASA, and they were being built by private companies. Private companies were already researching how to make chips smaller and faster, for the simple reason that they could make more money with such chips.
“… the Chinese economy will collapse in on itself …” is how the Original Post author ends after discussing the nation’s proposal(s) for improving energy efficiency. That prognostication is akin to something like FakeNews propagates and now today propagandized to readers of WUWT.
Once again, anything the state disagrees with is automatically labeled fake news.
Useful idiots are so predictable.
@MarkW: if you have evidence the Chinese economy has greater risk of collapsing than the United States economy please educate WUWT readers. China will continue in it’s trajectory of being a significant international player; what with the current 42 member Belt and Road Initiative and it’s currently expanding long term foreign economic integration with the current 15 member Regional Comprehensive Economic Partnership, among other activities.
As for your mention of “useful idiots”, because on-line word play lacks social clues, I will give you the benefit of the doubt that you were not intending to insult me personally. However, if that was your intention then I ask you to explicitly state so here and now in the public forum of WUWT.
The growing restrictions that Xi is pushing is good evidence of the troubles to come. What growth China has shown is completely the result of previous liberalizations that are rapidly being reversed.
He says with glee.
You are one sick puppy.
What is it about socialists/communists and their need to demonize anyone who dares to disagree with them.
’twas just a gentle trolling. Don’t get your knickers in a twist.
It rather looks like the western nations are in a mutual suicide pact. The general citizenry are like the children that don’t get a say. Of course those orchestrating this thing from the top may not intend to actually participate when it all comes down to being too late for anything useful to be done.
Exactly – hockey stick an’ all…
Hard to believe they could be that stupid, spending money on “climate change”.
“spending money on “climate change”
Where did you get the idea they are doing that? If you read carefully, and think about what you read, they are driving the “independent” businesses out of business, in favor of the Fascist sponsored businesses, and using so called ‘climate change’ as an excuse.
Given the universal failure of command economies, I hope China keeps going in this direction because given the direction the US is going, it’s our only hope of delaying Chinese supremacy.
I can only understand by reading this article & everyone commenting on it, that they & the writer have never actually been to China…
I’ve been to China. Last time while disembarking a Red Army guard read my name from a list of 3 people (the other two weren’t present), took me to a room, glared at me for a minute without saying anything, then angrily waved me to the door.
I can take a hint.
He was probably pissed off that three people were called and only one turned up. I think you are taking it personally. He was probably annoyed at the situation and not you. I imagine the other two weren’t arrested and incarcerated.
I might add that I had some unpleasant interactions with minor functionaries at airports in the UK, Germany and Russia. All were resolved without any real difficulties. I guess I should hold a grudge against those governments because of some low intellect individuals.
I lived in China for many years and travelled into and out of China many times and travelled internally. Never, not even once, did I have an issue.
At times I had to deal with airport security going through to terminals with overzealous young and cute females. Being older though relatively handsome, tall and slender, I had to ‘endure’ a close frisking that included my upper thighs and belt area and buttocks. Perhaps she was checking if I had a gun or was just pleased to see her.
My wife was cracking up with laughter on these occasions. I was tempted to go through security a second time.
Projections galore here….
I always find it interesting when China or Russia are the themes of the post.
It can sometimes appear that the ‘armchair’ experts come out.
Eric trots out his ‘experience’ with China (again, yawn’).
If you speak against ‘the flow’, you are in the pay of ‘big oil’, oops the CCP.
Quite amusing really.
They echo the Chatham House, Royal Institute for Foreign Affairs, line.
The US is in a complete froth.
And if one mentions economics, the London School of Economics mantra starts…
Been to China many times.
Seen the fabulous government at work…….
Been to many countries and have seen their governments at work. Has an excess of alcohol or medication blurred your perceptions?
You mean the British Government at work 🙂
And what’s your point? Do we need to personally know Chairman Xi and the Central Committee members before we can have an opinion?
When was the last time you had dinner with Xi?
don’t give a f..ck I was working there (on work visa).
You were a tourist?
And you’re an expert on the Chinese economy? You’re a study of their economic history and strategy?
If you gained any relevant insight into the topic at hand from working in China, why don’t you share that with us?
Otherwse, if I need to get advice on the best place to get Mu Shu pork, I’ll reach out.
Of course Xi is enhancing his power at the expense of liberty. That is what dictators do. For a short while, China seemed to be loosening the dictatorship, but then Xi eliminated what passed for term limits and began tightening the screws on Hong Kong especially. He’d rather be supreme boss of a sinking economy than just another forgotten 5 year premier in a society which might have moved on from one party rule.
Xi is doing a really awful job. He has messed up energy supply at least twice through his clumsiness (once in 2017, again in 2021). His anti foreign influence policies are driving out smart people. His worsening relationship with Taiwan is really damaging – Taiwan supplies a lot of the managers in Chinese factories, not so much if they are about to go to war.
He also forced banks to hand control of private savings to the CCP. Then, to really top it off, he has drained his economy to build a navy of substandard boats, to “challenge” the US Navy.
China had economic and possibly military domination in its grasp, and Xi is letting it all slip away.
The funny thing is, China has 4-5 times the US population. If he’d let liberty in, their economy would boom, and the natural course of events would make China the global super power in 50-100 years, of course with India in second place if they did the same. But by cracking down and strangling the economy, he’s getting exactly what he wanted to avoid.
From the looks of things (to my way of evaluating developments) China irregardless of “liberty” will end up being “the global super power in 50-100 years”. If for no other reason because the current super power, my United States of America, is becoming so “woke” it will eventually lapse into sleep- walking.
What a solecism!
‘Of course Xi is enhancing his power at the expense of liberty.
I can’t say much about my liberty in Australia at the moment.
Only a fool would think that Hong Kong wouldn’t be ‘integrated’ into mainland China.
The Chinese government, in whatever form, would consider that Hong Kong was stolen by the British Empire. Their agreement to maintain the status quo was in fact a ‘whatever’.
As an armchair expert, tell me how you move 1.3 billion people, who have never had a free election, to YOUR idea of democracy.
I see, not my problem, they should just do it.
If they follow your plan and dissolve the government and allow for free elections there would be total chaos.
Over 600 parties (probably infiltrated by the CIA and others of their ilk), complete disorder of society and many deaths.
The PLA steps in with all its weaponry until order is restored.
You may be interested to know that the PLA is in control of the country and not the communist party. The government of the day is in place to maintain peace and a harmonious society. That is the PLA mandate.
Tell the world how the Chinese should proceed. After all, you are such an expert at these things.
Me? I keep my nose out of shit I don’t know.
What a genteel way to describe enslavement.
You can put your word of choice between the inverted commas.
so much worse than even this
CCP’s total disregard for the environment is the backbone of their trade surplus, which keeps the country afloat despite trillions in ongoing capital flight
that’s why they have e.g. a rare earth industry
and because local governments are financed by land sales, they are still pouring 2-3x the OECD per capita average concrete while sitting on a cumulative advantage of around 10x
thus the slow-motion collapse of their real estate, which only went on this long due to capital controls, hukou, and other means to force Chinese into buying little concrete boxes (some not even intended for living)
and with real estate and net exports there goes about ~70% of current capacity
this is why e.g. S&P returns ten times the Hang Seng index over the last 10 years — 2700% vs 27%
environmental milestones in China have a long, glorious history of being celebrated over and over for the first time
I think Newton’s laws expressed it best.
Or, Whatever goes up comes down?
OMG, a China economy hockey-stick to make Mann blush.
‘fraid the Atlas Shrugged economic models have a London sensitivity – no wonder the IPCC models all run too hot.
Prescription – some fever medication, chill out.
PS: Atlas Shrugged is a 1957 novel by Ayn Rand, one time lover of Alan Greenspan, and the heroine of Senator Rand. Austrian School, London School of Economics, in China?
Just a nit pik here…
Who writes. proof-reads and publishes this junk…
Quote part 1:”sectors ranging from oil refining to non-ferrous metals smelting.
Quote part 2:”For example, steel, cement, coal-to-chemicals, aluminium smelting
I know from actual experience that Chinese steel is utter garbage that’s best suited to amusing and feeding the fishes at the bottom of the sea, but to describe it as non-ferrous is pushing things a bit……
Still it’s kind of funny to consider China producing “steel” which doesn’t contain any iron 🙂
That’s the inscrutable Chinese for you, with their secret recipes.
You seem to have difficulty understanding the phraseology of ‘from ….to…’.
There is nothing wrong with Chinese steel these days. The issues involved are political and not about the quality.
Well for starters that was in the original article.
And how in the world did you get from those two quotes that steel is described as non-ferrous?
Too much sugar. Maybe not enough.
I know little about China, but from the article cited its not at all clear that this is about CO2 emissions. Its entirely understandable the leadership should focus on energy efficiency – there are lots of reasons why they might think that a prudent policy for the future.
But there’s no mention in this of measures that are specifically emission related, and indeed the fact that they are moving ahead with coal generating plants on a grand scale, just as they always have, while embarking on this planning, strongly indicates that the goal of these measures may indeed just be energy efficiency, with any reductions in CO2 emissions being consequences and not part of the objective.
I don’t believe that Chinese companies will actually meet these standards. Most likely the big ones will bribe the officials who do the regulation to not apply the standards to them but to apply them stringently to their competition. The effect is the same for the small companies (they get pushed out of business) but it means the push for energy efficiency will be ineffective.
Normal market forces push for energy efficiency and China has an energy supply problem. I think this plan will distort the market, ruin competition and so reduce energy efficiency. China has ordered the killing of all the sparrows again.
SCMP is very Hong Kong oriented.
Much better economic analysis, for adults, here :
Study forecasts China investment of $75 trillion in carbon neutrality
High-tech green overhaul would arguably be the most ambitious investment program in economic history
Here is a highly qualified economist who actually lives and works in China :
Why China’s Economy is Successful- The Case of Evergrande Explained by Dr. Eamon McKinney
China Business Network
“China Business Network was founded in 1985 by Dr. Eamon McKinney. Its purpose was to provide the essential range of business services required by foreign companies seeking to establish operations in China. Since its inception CBN has worked for hundreds of foreign clients including many fortune 500 multinationals. Through its work with leading corporations such as Ford, General Motors, Caterpillar, Joy mining, Boeing, Pfizer and AstraZeneca CBN fully understands the unique and specific challenges facing manufacturers as they endeavor to establish operations in foreign markets.”
I hope this raises the level of discourse here .
Nothing Bonbon does, will ever do anything than scrape the bottom of the intellectual barrel.
How to change in his constant race to the bottom?
I call that pro Putin troll a boring tautological entity talking constant bollox.
Loved the picture of the UN/Congress/Parliament/IPPC —— fill in the blank!
I’m slowly learning the new morality of our postmodern age.
Doing a thing can be both/either good and bad depending on the nationality of who is doing the doing.
Americans who go ecofascist are saving the pulanet.
Chinese who go ecofascist are being bad yellow peril types.