In China, pollution control comes down to the sum of individual decisions. Invest in environmentally friendly clean appliances are still too expensive for them. However, the problem is that the consequences will be felt nationwide … and all over the world 
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© REUTERS Petar Kujundzic China’s pollution control environment comes down to the sum of individual decisions. Investing in environmentally friendly technology for them is still too expensive. However, the problem is that the consequences will be felt throughout the country … and the whole world. To you, without doubts have already heard about the strongest air pollution in China. After a dizzying economic growth over the past For 25 years, the words “pollution” and “China” have almost become synonymous. Chinese-made development recently opened incredible investment opportunities, but we have already come to that critical mark when air pollution in the country also creates certain prospects. A little tip: we will talk about platinum and palladium. Pollution in the Middle Kingdom came to just monstrous level. Beijing often covers a thick smog, which reduces visibility to just a few meters. January 12th sensor on the roof of the american embassy issued an astounding figure of 755 by US Environmental Protection Agency Air Quality Index (EPA). In order for you to better understand the essence of the matter, this indicator usually did not exceed 500. Moreover, EPA believes that any Pollution Above 100 May “Harm susceptible people. “After 400, air becomes” dangerous “to all without exception. Air quality has become so poor that even the Chinese leadership, which usually prefers to remain silent, gave the green light to an open discussion of this problem. By by itself, it wants to show that “you need to do something.” Even the official newspaper of the Chinese Communist Party “People’s Daily” somehow has published on the front page an article titled “How do we break out out of the choking clutches of pollution? “In a recent interview Minister of the Environment from 1987 to 1993, Qu Geping made such a statement: “I must admit that [national and local] authorities have done too little to restrain the desire for economic growth at all costs. They failed to escape some of the worst pollution scenarios that we predicted political decision makers. “In the past the Chinese government has never been so openly recognized own mistakes. Causes of pollution But let’s take a look beyond the Great Wall of China. Why air quality in China now so terrible? Well, it’s winter in the yard, and the wind no longer carries all the dirt to the sea, towards Korea and Japan. Air pollution in China “casts a shadow over the whole world”: many years talk about it scientific research, the results of which were summarized in the article New York Times. Observation stations all over the west coast North America (from California to British Columbia) regularly give alarms as clouds of dirty air approach from China’s that hardly dissipate despite the journey across the Pacific. As the journal Chemical & Engineering writes News, at least 30% of West Coast air pollution America can be directly attributed to Chinese “imports.” Nonetheless, the demolition of dirt coming from China towards the sea (California) cannot become a solution to a critical problem and gives only temporary results. The key task now is to determine the root of the problem. China needs to deal with the source. Greatest danger in Chinese pollution are currently hanging particulate matter in the air. They form a fog, penetrate the lungs human beings and cause a variety of health problems and security. Where do they come from? Most really harmful substances enter the Chinese air from the exhaust pipes million trucks and other diesel vehicles, as well as countless generators that support no different especially reliable Chinese power grid. Over the last few weeks I looked at a number of articles about the environmental crisis in China, and I came across only rare (very rare!) References to lack of catalytic converters in most Chinese trucks and generators. In an Associated Press article states that the emission control system can lead to a sharp jump in prices for trucks and powerful generators (their the cost may increase by $ 3,200). According to John Zeng from LMC Automotive Ltd., “about the technological problem of speech is not here is coming. Everything rests on the capabilities of consumers. Cleaner emissions mean a much higher price. “Take a look at the last 25 years of Chinese development. China was a “poor” country in the sense that his starting point for economic growth was at the very downstairs. No wonder buyers of cars and generators don’t wanted to spend “extra” money on means of limiting harmful emissions. Such a microeconomic strategy was probably quite reasonable step for the simple consumer for these 25 years. But what if you put everything together and add macroeconomic here consequences in the long run? On Chinese roads today millions of cars drive around without catalytic converters. Is it possible in such circumstances to rely on clean air? China is approaching a critical point in terms of pollution. The country will have to take action, otherwise it will simply suffocate. What does all this mean for an investor? Where did these come from? an extra 3200 dollars? Most of them go to catalytic converter, and more specifically to platinum and / or palladium necessary for chemical reactions that allow significantly reduce emissions of harmful gases. Without these rare metal production of converters is not possible. Of particular relevance to palladium takes on this issue, as it is best suited for catalytic converters in a diesel engine. To repay demand in the automotive industry currently takes 81% of palladium production, despite the fact that only a few years ago this the indicator was at around 60%. In addition, palladium prices closely tied to the demand for automotive converters. So, for example, in 2000, when catalytic converters went over 100% of palladium production (the deficiency was compensated by existing stocks), prices for this metal exceeded the mark at $ 1,000 an ounce. All this brings us back to China and his problem with air pollution. There are reasons to believe that the Chinese will introduce more stringent emission controls on new trucks and generators or even require retooling old models. How will this affect the demand for platinum and palladium? He sharply will go up, and with it prices. Byron King (Byron King)
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