Comments on: Are Chinese Corporate Earnings Inflated? http://www.chinavortex.com/2007/11/are-chinese-corporate-earnings-inflated/ China | Business | Economy | Internet | Technology Tue, 05 Jan 2010 00:49:53 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Brad Luo http://www.chinavortex.com/2007/11/are-chinese-corporate-earnings-inflated/comment-page-1/#comment-227 Brad Luo Sat, 03 Nov 2007 15:20:16 +0000 http://www.chinavortex.com/2007/11/are-chinese-corporate-earnings-inflated/#comment-227 The days of high corporate earnings without internalizing the externalities related to such income appear, at least in theory, to be nearing their end, at least to the exporters. As you might be aware of already, China has introduced tougher environmental regulations, specifically targeting exporters. Basically, the rules spell out this message--if you pollute, you don't export for as long as it takes you to clearn up. For concerned people, like Mr. Xu Shanda, this means an advancement of their cause for corporate responsibility, at least in the export industries as of now. The following is an excerpt of the above-mentioned article by Jane Spencer of Nov. 1, 2007: "China is introducing new antipollution regulations for its booming export industry, in an unusual collaboration between the government's environmental-enforcement arm and the Ministry of Commerce. The rules could affect thousands of Chinese suppliers that make goods for multinational companies. Earlier this week, Zhang Lijun, vice director of China's State Environmental Protection Administration, said export manufacturers that violate China's pollution laws would be forced to close for one to three years. The policy will be enforced jointly by SEPA and the Ministry of Commerce. The ministry said the prices of Chinese exports are artificially low because factories aren't ..." This is a good move, and it would be better to expand the rules to cover non-export companies too. After all, a polluter is a polluter, regardless of the nature of the underlying operations. Internalizing externalities should be party of every company's cost of operations. The days of high corporate earnings without internalizing the externalities related to such income appear, at least in theory, to be nearing their end, at least to the exporters. As you might be aware of already, China has introduced tougher environmental regulations, specifically targeting exporters. Basically, the rules spell out this message–if you pollute, you don’t export for as long as it takes you to clearn up.

For concerned people, like Mr. Xu Shanda, this means an advancement of their cause for corporate responsibility, at least in the export industries as of now.

The following is an excerpt of the above-mentioned article by Jane Spencer of Nov. 1, 2007:

“China is introducing new antipollution regulations for its booming export industry, in an unusual collaboration between the government’s environmental-enforcement arm and the Ministry of Commerce.

The rules could affect thousands of Chinese suppliers that make goods for multinational companies.

Earlier this week, Zhang Lijun, vice director of China’s State Environmental Protection Administration, said export manufacturers that violate China’s pollution laws would be forced to close for one to three years. The policy will be enforced jointly by SEPA and the Ministry of Commerce.

The ministry said the prices of Chinese exports are artificially low because factories aren’t …”

This is a good move, and it would be better to expand the rules to cover non-export companies too. After all, a polluter is a polluter, regardless of the nature of the underlying operations. Internalizing externalities should be party of every company’s cost of operations.

]]> By: China Law Blog http://www.chinavortex.com/2007/11/are-chinese-corporate-earnings-inflated/comment-page-1/#comment-224 China Law Blog Fri, 02 Nov 2007 15:05:17 +0000 http://www.chinavortex.com/2007/11/are-chinese-corporate-earnings-inflated/#comment-224 Tort reform can encompass so much, it is nearly impossible to comment on it as a whole. What I will say though is that I believe the US tort system is actully quite effective at improving safety and, for the most part, works much better than credited. Definitely it could use some reform at the margins (what couldn't?) but I do noth think it is broken. Tort reform can encompass so much, it is nearly impossible to comment on it as a whole. What I will say though is that I believe the US tort system is actully quite effective at improving safety and, for the most part, works much better than credited. Definitely it could use some reform at the margins (what couldn’t?) but I do noth think it is broken.

]]> By: sqtown » Blog Archiv » Are Chinese Corporate Earnings Inflated? http://www.chinavortex.com/2007/11/are-chinese-corporate-earnings-inflated/comment-page-1/#comment-220 sqtown » Blog Archiv » Are Chinese Corporate Earnings Inflated? Fri, 02 Nov 2007 03:16:36 +0000 http://www.chinavortex.com/2007/11/are-chinese-corporate-earnings-inflated/#comment-220 [...] here for full story Der Beitrag wurde am Thursday, den 1. November 2007 um 20:11 Uhr [...] [...] here for full story Der Beitrag wurde am Thursday, den 1. November 2007 um 20:11 Uhr [...]

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