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China's Quest For Clean Air Could Hit You in the Wallet

  • Smokestack corporate consolidation has pushed up metals prices
  • Impact passing through to consumer goods as cleanup gains pace
Bloomberg business news
China Still Largest Market for Clean Energy: BNEF
Updated on

The great Chinese environmental cleanup, now in full swing, is shifting the corporate landscape in unexpected ways and even stoking inflationary pressure that may soon be felt in supply chains worldwide.

As President Xi Jinping’s government intensifies the fight against the country’s world-class pollution problem, companies are scrambling to adapt to tighter regulation while investing in cleaner energy. In industries from steel to textiles and consumer goods, the resulting shakeout has left the survivors with far more pricing power. That in turn is reinforcing the already-resurgent factory prices that contribute to global inflation.