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China’s Olympic Controls Hurting Industry

07/29/2008
Pollution control measures taken by the Chinese government in the wake of the Olympics are causing financial difficulties for businesses, according to a report by the Associated Press. Chinese providers of steel, pharmaceuticals, auto supplies, and raw materials are being affected by factory shutdowns and other industrial restrictions the government put in place to help reduce smog and air pollution in Beijing and surrounding areas. Manufacturers are having difficulty maintaining supplies as truck bans in the capital make deliveries more costly or impossible. In addition, restrictions on tourist and business visas are creating a slump in the hotel industry, with upscale hotels that were renovated in anticipation of the Olympics sitting half-empty. The report indicates that monetary figures for the losses are difficult to estimate, and that China's exports will not be greatly affected because suppliers had several months to prepare.

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