Oct 29, 2015 10:03 PM EDT
China, the world's largest smart device market since 2011, is known to be a power in the manufacturing aspect of the industry. But various reports now indicate that China is going through an economic contraction, which has been observed to be more prominent in the northeast part of the country.
Last month, Fortune revealed an article detailing China's index drop from surveys conducted by Purchasing Manager's Indices (PMI).
The PMI index is typically calculated using five major indicators: inventory levels, production, employment environment, new orders, and supplier deliveries.
Meanwhile, statistics analyzed by the Caixin Manufacturing Purchasing Manager's Index has also reflected the same drop, which puts China and its economy at a 47.3 index score in August of this year.
The drop is suspected to be the result of companies' "efforts to curtail pollution." An article published on The Guardian covers the details of China premier Li Keqiang's announcement to implement countermeasures, promising that the country will be doing whatever they can to combat ever-increasing levels of pollution in the country.
The government will be imposing bigger penalties and promise to publicly "shame" all companies that do not stop creating illegal emissions. "We must... ensure they pay a heavy price for such offences; and hold those who allow illegal emissions to account," Li said in a comment on the issue.
His announcement came after a documentary video revealing the horrific fog in China became viral and netizens started criticising the lack of action taken by the government to address it.
Chinese citizens are constantly facing the dangers of pollution. Smog so thick that it literally blocks out the sun have been observed by many locals in China's manufacturing sectors.
Meanwhile, news has also circulated of China's new child policy, which abolishes its previous decision to limit couples to a child each. China is now allowing two children per couple - a decision made to address the growing trend of Chinese citizens giving birth outside the country.