A study on the Impact of Environmental Regulations on the Quality of Exported Products in China's Manufacturing Industry

The proportion of export commerce in China’s manufacturing has grown substantially in past decades. The strategy model of “low quality, low price, high pollution, high consumption, and high emissions” has led to severe environmental problems in China, resulting in a “big but not strong” trade problem for the manufacturing industry. In this study, environmental regulations’ effects on the quality of exported goods in 30 Chinese provinces between 2006 and 2020 are examined. Additionally, the paper further investigates whether there is threshold effect in environmental regulations. As shown in the findings, environmental regulations have a substantial effect on the exported products’ quality. Moreover, the effect of environmental restrictions on the exported products quality in China's manufacturing industry varies depending on the level of environmental regulation. Environmental regulations have a greater encouraging influence on the quality of exports at a lower level. This research is essential for the revolution and modernising of manufacturing in China and the encouragement of environmentally friendly economic development.