here's a link
http://www.theaustralian.news.com.au/story/0,25197,23338067-643,00.html
Power shortages and transport chaos in areas of central and southern China during recent winter storms are one reason. A lack of water, restricting the output from hydro power stations, is another. Severe environmental pressure from the national government is yet another. Nationwide publicity given to the fate of dying Lake Taihu in Jiangsu province just north of Shanghai, for instance, is prompting local government action, including the relocation of chemical plants.
In the medium- to long-term, questions are starting to be raised as to whether China, no longer so dependent on exports or on heavy industry, wishes to continue producing such chemicals in such quantities. This will be the hot topic at China's biggest annual agricultural chemical exhibition and conference, which is held next week in Shanghai, with all the big global players present.
This global cost is being affected by factors such as the reduction in the export subsidy previously provided by the Chinese government, which formerly returned 11 per cent of the value added tax it pays, but now only returns 5 per cent, and is soon expected to cut out the tax rebate altogether.
subsidies, the bane of capitalism. and they always slow down change. imagine if the government had a program to keep 40% of the population working on farms. it's what they do today for many things.
change must be bad if we keep using subsidies to stop it.
