The Inconvenient Truth about China

Nobel Peace Prize co-winner Al Gore needs torequires three major ingredients.
rename his famous $40 million powerpoint presentationThe first, and by far most important, is a major change
to "The Inconvenient Truth about China".in thinking on the part of the Chinese leadership. Of all
While the media and policy establishment arepeople, I am a believer in economic growth but it has to
preoccupied with global warming issues that may havebe balanced against damage to the environment. For
important consequences in 50 years or may be vastlythe most part, Chinese environmental laws and
overstated, an environmental disaster exists in Chinaregulations are already on the books, they just need to
right now. This significant challenge, however, is also abe strictly enforced.
major opportunity for the Chinese leadership andThis means giving local and regional administrators
American business.more independent authority, something that the
To get your attention, below is just a just sampling ofleadership is uncomfortable with given their top down,
facts drawn from various sources including anauthoritarian bent. It also requires a change in its
excellent article by Elizabeth Economy in Foreign"economic growth at all costs" attitude.
Affairs.Secondly, cleaning up China's environment will require
- China is the world leader in air and water pollution.big bucks. No problem here in light of huge China's $1.3
- Sixteen of the most polluted cities in the world are intrillion in foreign exchange reserves. Setting aside $200
China.billion over the next three to five years should help
- According to World Wildlife Fund, China is the largestenormously.
polluter of the Pacific Ocean.Thirdly, this environmental initiative will require
- 2/3 of China's largest 660 cities face a watertechnology and expertise. This is where American
shortage right now.business, the global leader in environmental technology,
- The EPA estimates that 25% of the particulatescomes into the picture. Congressional pressure on
hovering over LA originate in China.China concerning growing U.S.-China trade deficits is
- In converting coal into energy, America is six timesenormous and growing. Giving American firms the lead
more efficient than China, Japan is seven times morein helping China to address environmental issues will
efficient and India is three times more efficient.help the Chinese leadership to show its citizens that it
- About 190 million people in China are sick fromis taking concrete action while at the same time
contaminated water.sharply reducing trade tensions and imbalances.
- Netherlands' Environmental Agency states that ChinaThe environmental challenge in China is daunting but
is the world's largest contributor of CO2.procrastinating will make it ever the more
- A World Bank/China Government joint studyunmanageable. American business is ready to saddle
estimates that about 750,000 infants a year faceup and help wherever it can. If all this happens, the
premature death due to respiratory disease.following ETF baskets of American businesses could
- Chinese experts believe that only about 10% ofdirectly benefit if they have the foresight to go after
China's environmental laws are consistently enforced.opportunities in China.
Clearly, decisive and immediate action is necessary. It