Study shows how China’s air quality affects its global competitiveness

China has the second worst air pollution in the world, after India, according to a state think tank's report on global environmental competitiveness.

The report, covering the year 2012 and issued by the Chinese Academy of Social Sciences (CASS) on Thursday, also concluded that China ranked 87th out of 133 countries in overall environmental competitiveness, after evaluating each country's ecological status, environmental management capacity and the balance between economic growth and conservation. The data was compiled using 16 indicators, including air quality.

Switzerland, Germany and Norway topped the list. Brazil was the highest-ranked developing country, in fifth place, while the United States was 26th.

The study evaluated air quality based on levels of four pollutants, including smog-induced fine particles known as PM2.5, as well as the level of indoor air pollution, using figures from international organisations such as the United Nations, World Health Organisation (WHO) and the World Bank.

Professor Huang Maoxing of Fujian Normal University, a main author of the report, said China's smog was a major factor. "This is a newly emerged problem, and the country has only started to monitor PM2.5 very recently … China still has a lot of room to improve," he said.

The ranking coincided with the release yesterday of a Greenpeace report which said that last year nearly 92 per cent of Chinese cities failed to meet the national air quality standards on PM2.5, particles 2.5 microns or less in diameter which are the most hazardous to public health.