Factories Ordered Shut as Beijing Chokes in Smog

China Shuts Down 1200 Factories After Smog Red Alert

smog china

Beijing city authorities ordered a shut down or an output-cut for over 1200 factories near China’s capital on Saturday. A refinery run by the oil-giant (state owned) Sinopec is among those affected. The desperate measure followed after the air quality in Beijing dropped dramatically and the Chinese authorities were forced to issue the highest-possible air pollution alert.

China’s environmental agency issued a 5 day alert on Friday, warning the population about a huge wave of toxic smog that was spreading over the north of the country. Numerous factories were forced to shut-down and the population was recommended to stay indoors. Construction work was halted and traffic limited to emergencies, as the red alerts with regard to the air quality index were forecast to break two hundred for more than 4 days consecutively. The AQI (air quality index) in Beijing showed a 297 reading on Saturday afternoon.

China’s main city and the country’s capital was slowly taken over on Saturday by a smog-haze, after an earlier reading showed an AQI of 120. An AQI level of 301-500 is considered dangerous for human health.

It seems that in addition to China’s newly discovered tradition of credit funded boom bubble bust economic cycle, which jumps from asset to asset, the country which is sometimes described as the West’s industrial park is getting accustomed with deadly smog alerts on a regular basis.

Basically, every burst in China’s economic strength, which still relies on an old-school economy manufacturing model, is followed by smog alerts. What happened on Saturday in Beijing follows months and months of manufacturing expansion.

Since everything comes at a price, China’s bill seems to be a catastrophic pollution problem, which eventually caught up with the manufacturing expansion, forcing Beijing’s city authorities to order a shut down of 1200 factories.

smog china

The main Chinese news agency Xinhua tweeted that Smog Invades Beijing and they even posted a time lapse of the phenomenon. Other tweeted pictures via Xinhua’s official account revealed the skies of Beijing blackening on Friday.

Nurseries and primary schools will remain closed until Wednesday, when the pollution situation is supposed to be remedied, according to Xinhua. China’s horrible pollution problem occurs every time the Communist Party orders companies to boost production in order to meet proposed GDP figures and the economy overheats after a few months of credit expansion, hence the air becomes toxic and Beijing is forced to slowdown the economic growth by fiat (again) and a break in the credit impulse appears, leading to more fiat money/credit creation to restart the economic cycle once again.

Source: Yahoo News