Business closures happens in battle against pollution

As the economic development and growth in China is increasing rapidly, pollution is a real and growing problem, especially in big cities. In the Chinese public people are discussing the environment as the main topic and especially air pollution is an issue that can not be ignored. We have experienced that the Chinese authorities are investing heavily in alternative and sustainable energy sources. Also we see an increasing focus on the problem of smog formation in the big cities.

At the current time the authorities are working on reducing the problem and to stop the sources of pollution. Recently we have seen the result, as we have experienced a significant number of business closures in larger scale. In the region where our Chinese office is located, more than 17,000 businesses have been closed down by the Chinese authorities.

The affected companies will simply be shut down immediately and can only start up production again, when they can document that a number of statutory environmental requirements are in order. The closures happen random.

What does it mean for us and our customers?

Cp Sourcing’s department in China is not shut down.

We are following the situation closely and have established new partnerships with alternative suppliers. At the same time we are working with a large number of producers, who are in compliance with the requirements. So in the event that – contrary to our expectations – they will be closed by the authorities, we expect that they will soon be able to start production up again.

Our customers will most probably not be significantly affected by the situation. Our current experience is that only a few of our customers have noticed the business closures in China.

Do you have a new project, you want to start up with Chinese suppliers, please feel free to contact us. We can advise you on the specific situation and development in China.

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