Beijing promised to transform itself from a high energy consumer to sustainable development practices to reduce the 15 per cent of the world consumption rate to contribute 5.5 per cent of the global gross domestic product (GDP). Making public this policy shift, National Development and Reform Commission (NDRC) Minister Ma Kai said that economic reconstruction policies are required if China is to reduce its energy consumption rate.
Morgan Stanley Chief Economist Stephan Roach agreed with Kai that a vast rebalancing is required by China is it is to reduce pollution and adopt sustainable development. However, in a sign that such change is not imminent, Development Research Centre of the Chinese Cabinet Deputy Director Chen Qingtai blamed the slow transformation on market forces.
While it may be desirable for China and the world that it adopts sustainable development practices, it is unlikely that it may make the change soon out of fear that it may lose its competitive edge. Environmentally friendly technologies have not developed to maintain competitive advantage of businesses for all processes.