China’s goal for blue sky Beijing Winter Olympics set to cause ‘supply-side shock’ as factories close
- Efforts to reduce smog have been extended to 64 cities this winter, plus Beijing, which hosts next year’s Winter Olympics
- Restrictions on production will heap pressure on economic growth and domestic supply chains, analysts say
The Beijing Winter Olympics may weigh on China’s economy as authorities close scores of factories in northern production hubs to cut pollution and ensure blue skies, economists say.
“Although the Yangtze River Delta and the Pearl River Delta are not involved, the area that is affected is also a relatively important part of China’s economy, especially in terms of raw material productions,” Lu Ting, chief China economist at Nomura, said at a webinar on Monday.
The area encompasses some of the country’s most important heavy industrial hubs, such as Tangshan, the world’s biggest steel-producing city in Hebei Province; Shanxi, the country’s largest coal mining province; and major aluminium producing provinces Shandong and Henan.
01:45
Beijing air quality reaches 'very unhealthy' levels as China ramps up coal output
Restrictions on production will heap pressure on the economy and domestic supply chains, analysts said.
