China’s government policies were already addressing air pollution by “requiring thermal power plants to install desulphurization systems and progressively increasing vehicle-emission standards,” according to the research firm. As one recent example, last May I discussed Beijing’s additional subsidies devoted to energy-efficient products, including fuel efficient cars, LED lighting and high-efficiency motors.
This year, leaders appear ready to continue these environmental priorities. In comparison to last year’s budget, a larger portion of government spending will go toward environmental programs. While other areas will see a decrease in spending compared with last year, spending on environmental protection is projected to grow nearly 19%, says JPMorgan.
With a concrete plan and a budget in place, it all boils down to execution and enforcement. And in March, the once-in-a-decade transfer of power became official, as the National People’s Congress in China elected Li Keqiang as premier and Xi Jinping as president.
Xi now holds the three most powerful titles in elite Chinese politics: The Secretary General of the Party, the Chairman of Military Commission and President of the Nation. This “triple-power strength” positions him as an ideal reformer for China. He may likely have little interference from former leaders, giving him a freer hand to tackle some of the growth challenges in China today, including reforms to improve environmental protection.
We look forward to watching these leaders in action.