A program aimed at curbing pollution by tightening loans to polluters has not turned out well in China. “Implementation of the green credit policy has yielded initial achievements in the past half year, but it still falls far behind our expectations,” said a Chinese official with the State Environmental Protection Administration. SEPA tried working with state banking regulators in order to require those borrowing money to meet certain pollution standards, but the effort simply has not turned out as well as hoped. It is all too common for those obtaining loans to make promises, but enforcing carrying out of the guarantees has created problems.
A nation which is engaged in promoting rapid economic growth will always encounter difficulty in attempting to curb those who generate profits and jobs. In many respects these are contradictory goals. How does one shut down corporations which are part of the dynamo of Chinese industrial expansion?