China's future investments in environmental protection and control of manufacturing industry: lessons from developed countries

A country's manufacturing industry is an indicator of its economic competitiveness internationally. In 2009, China has its manufacturing added values surpassed the USA and now became the largest manufacturing country in the world, followed by Germany, the USA and Japan. However, manufacturing industry's development aggravates environmental resource externalities and environmental pollution. The controls for the environmental pollution are essential to achieve the manufacturing industry's sustainable development. In this comparative analysis, we examine environmental pollution control expenses, environment-related taxes and waste management capacities in the UK, Germany and Japan to seek the effective practices that China can follow to achieve sustainable development. We conclude that China's manufacturing industry needs more investments in environmental protection and control. To achieve sustainable development, recycling and environment-related taxes are effective methods for China's manufacturing industry besides government expenditures in environmental protection and control. Such measures would be a "win-win" for both economy and environment.