Economy

Air Pollution Shuts Down Beijing, Threatens Industry

Douglas A. McIntyre

Published: December 19, 2015 9:15 am

Last Updated: January 13, 2020 3:54 pm

Beijing has issued another warning that severe air pollution has hit a level at which industrial production may be cut and that will cause people to remain in their homes. A tweet from China’s CCTV news said:

#Beijing issues its second red alert of the year for heavy air pollution from Sat. to Tue.

Such an alert was also issued December 7. Official news agency Xinhau described the effects of the government’s decision:

A red alert, the highest level for smog danger, is set to take effect in Beijing tomorrow morning.

Starting at 7am on Tuesday, an odd-even license plate restriction will be imposed on all vehicles in the city.

Industrial production will also be curtailed further, and further restrictions on schools may also take effect.

This is the first time since the 4-tiered color-coded smog system was brought in a few years ago that the condition has been brought to red in Beijing.

This come as the heavy smog has returned to the capital region after a couple of days reprieve.

As 6pm this Monday, PM2.5-levels across Beijing are averaging around 240.

Levels higher than 200 are defined as heavy pollution by Beijing’s environmental protection bureau.

As such, schools were told to keep their students indoors today.

The capital has already seen a reduction of industrial activity.

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Factory activity is among the pillars of the Chinese economy. Any slowdown in this activity would undermine China’s already slowing manufacturing sector, which is critical to it gross domestic product. Also, China is the world’s largest car market and is expected to generate 20 million sales this year. Car sales are critical to the health of local manufacturers and joint ventures with global manufacturers that include General Motors Co. (NYSE: GM) and Volkswagen. The car industry worldwide is counting on China to lift its revenue and bottom line.

The Chinese government has to make one of two bad decisions: allow Beijing citizens to choke on smog or curtail critical parts of its economic sector.