(SOUTH CHINA MORNING POST) -- The long-running trade war with the US has taken a well documented toll on China’s economy, dragging growth down to its slowest pace in decades. But as the country ramps up its factory output to try and counteract the slowdown, the environment is now paying a price too, according to a growing body of evidence.
Increased industrial production aimed at offsetting stuttering growth is cancelling out efforts to eradicate the famous smogs that hang above many of China’s cities, said Charles Yonts, head of power and ESG research at CLSA.
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The rises in activity of the most dirty industries in northern China pointed to a “smokestack stimulus”, he said, as part of a “desperate effort to keep GDP humming along.”