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Tim LeeMaster

China has made enormous strides in upgrading its environmental and social standards despite a lingering reputation as the low-priced, low-quality sweatshop of the world strengthening its rising dominance in Asia's economy.

China is taking the lead in many senses even if in many senses they may be quite backward,'' said Niclas Svenningsen, Asia-Pacific environmental affairs officer for the United Nations. If you go to Thailand, Malaysia, even Japan, everyone is asking what are they doing in China? Let's try to keep pace with China. They are the benchmark here.'' China's interest in clean development comes on the back of 20 years of rampant growth that has created huge air and water pollution problems that leaders fear may threaten the quality of life, social stability and further growth. Premier Wen Jiabao has shown particular interest in the issue of sustainable development. He's consulted more widely on the environment with scientists than ever before,'' said Christine Loh, chief executive of Civic Exchange.

And with good reason. China and India's growth present major policy-side implications,'' said Professor Martin Charter, director of the Centre for Sustainable Design, University College, in the United Kingdom. But he added: We're starting to see real thought.'' Beyond the sheer size of China's economy, entry into the World Trade Organisation and growing global interest in sustainable economic development after the 2002 Johannesburg summit have been the prime drivers of China's newly found leadership. The government is putting tremendous pressure on business to get up to international environmental standards and is closing down operations that don't comply, Svenningsen said on the sidelines of the EnviroSeries Conference 2004 in Hong Kong.

China's practical, entrepreneurial spirit is also at work. They know its needed to get access to markets,'' he said. Loh points to the increasingly recognised high standards of foreign-invested and domestic manufacturing industry as evidence that collectively you can make a difference'', she said.

The extra advantage of meeting or exceeding standards is yet another coup for China's growing economic dominance. Other countries (in Asia) are saying they're not going to be able to do that,'' Svenningsen said. They say that they're (China) cheaper and have better standards. We can't compete with them on anything.'' Association of Southeast Asian Nations and Latin American countries fear China's ability to take away important export industries leaving them fewer avenues for their own economic growth. On the domestic front, standards are looking tough too as the promulgation of car emission standards are the highest in the world. That has caused foreign carmakers to complain they may not be able to sell in China. China's vehicle industry is growing at 30 per cent annually with output soon to surpass four million vehicles. The high standards are one method of keeping pollution levels down with such rapid growth figures. Regulation of the food industry, however, is still woefully inadequate as the recent baby formula scandal has brutally illustrated. China's huge and growing demand for food supplies, and the enormous proliferation of small and medium-sized companies aimed at satisfying it, is one reason deception is more prevalent in the sector. But there's no reason why they can't perform as well'', Loh said. Professor Charter said that all countries, in both Asia and the West, still fell short of their full potential in relation to environmental and social responsibility. The focus is on single instruments, not a co-ordinated approach,'' he said. We need to see consumers, retailers, business-to-business as well as business-to-government involvement.'' Source: The Standard.The Standard: