Air Pollution Shuts Down Beijing, Threatens Industry

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By Douglas A. McIntyre Updated Published
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Air Pollution Shuts Down Beijing, Threatens Industry

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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:

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.

[ims_survey]
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.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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