Like many Chinese companies, some multinationals have learned the easy way about doing business in China. In the case of the Carlsberg beer joint venture (unfortunately one of my favorite beers) in Tianshui, Gansu Province, the company was simply willing to pay a fine twice a year for its lack of wastewater treatment facilities, according to a recent news report. While each fine cost 5,000 yuan ($657), it is much cheaper than setting up a sewage treatment plant, which would require a 3.9 million yuan ($513,000) investment.

As a matter of fact, multinationals, along with being responsible for their own factories, should also be held partly responsible for the Chinese companies producing for them.

China has become a major sourcing base for multinationals. About 37 percent of the country's GDP in 2006 was for exports. Take Wal-Mart, for example. If it were counted as an individual economy, it would be China's eighth largest trading partner.

In this regard, multinationals, which like to tout their corporate responsibility, should not only mind the environmental practice of their own factories, but also the Chinese companies where they source their products.

If they can do that, they will truly deserve the cherished reputation of a good corporate citizen.

Pointing out the responsibilities of multinationals in China's dire environmental picture is not to play the blame game; it is to call for the immediate attention of everyone - governments, corporations and individuals - to be aware of their obligation to help stop the environmental crisis that is hurting China and the world.

The government should play a major role by strictly enforcing environmental laws and regulations. Attempts by local governments to attract foreign and domestic investment by lowering environmental standards should be completely stopped. At this critical moment of environmental crisis, the message should be crystal clear: There will be no mercy for polluters.

To do this, the environmental protection agencies at various levels should be given stronger powers to show that they have teeth and are willing to bite.

The National People's Congress, the lawmaker, should also make tougher laws forbidding foreign relocation of their polluting industries into the country. Achieving high economic growth at the cost of the environment is simply not sustainable anymore.

A much-needed environmental tax, proposed by many experts, should be introduced as soon as possible to reward clean production and deter and punish polluters.

Multinationals should stop taking advantage of the lax environmental standards in the country.

Governments in developed countries, who like to blame developing countries for causing pollution, should also take measures to stop encouraging or letting their companies transfer pollution to China or other developing countries.

Otherwise when they blame China for spreading air pollutants, they should be able to recognize some of the pollutants earmarked by their own companies.

Pollution knows no international borders. Pollution being relocated overseas will ultimately return to you via air, water and manufacturing products.

(China Daily 07/07/2007 page4)

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