G
GainBrain
Member
That is true. It's government run "capitalism". When you have 1.4 billion people to feed and keep happy, you subsidize whatever is needed to keep things going.
Our company had a chemical manufacturing plant in China that was built by a another company before we bought that division. They manufactured materials for years. While environmental restrictions were lax early on, thing tightened up years later. While not as strict as most US or EU policies, it was getting there. Certainly it was far above companies in India at the time.
All that went away when the Chinese government decided to convert the entire district to residential, closing numerous factories, including ours. When the planners decide they need something, it's fair game. They are also somewhat sensitive to negative publicity. After a major explosion at a chemical plant over 10 yrs ago, the government cracked down even further. They have had a number of similar events over the years, and it tends to upset the apple cart.
This is getting off topic but I'm not sure China has interests in keeping it's people happy as much as controlling them. But that's just a guess...