The Janus-faced view of China's economy : implications of trade for environment

In the current historical conjuncture observers are often driven by their Janus-faced view on trade and environment in China: on the one hand, China is a prime mover of the global trade. On the other, China is also a major contributor to the global warming. We empirically examine the impact of trade and economic growth on pollution in China's Yangtze River Delta in order to understand the impact of trade on pollution in China. Analysis of panel data from 16 cities, over the period 2004 to 2007 reveals that trade and growth can reduce pollution in China. Our work thus rebuts the Janus-faced view that China's economy is good for trade and economic growth and disastrous for their environment. However, a more detailed study is required before one can reach definitive conclusion about the relationship between trade and growth in China.