Roundup: News and reports on business opportunities in China

 

China is transforming at a rapid speed and has seen rapid economic development. As demand for water has increased, so too have problems with water shortages, pollution, falling groundwater tables, and flood/drought damages. To tackle these challenges, the Chinese government increasingly encourages foreign companies to engage in the country’s water market. Market research studies claim that this market holds promising business opportunities for both domestic and foreign companies. In spite of remaining market barriers, the Chinese water market indeed holds business opportunities. In fact, a key role in solving China’s water crisis is predicted to be played by international companies and governments.

RAI Amsterdam and CHC Expo are pleased to announce that the next edition of Aquatech China will take place from 3-5 June 2019 in Shanghai. With its most extensive programme ever, the event will provide new and returning exhibitors with a vital platform to access this exciting water market.

“There are many opportunities in China around water, but international companies also face challenges when trying to do business there. At Aquatech Global Events, we believe in the power of connecting people. For Aquatech China, we create the right conditions for exhibitors and visitors to come together and do business in China.”

Dorien Sibbel
Exhibition Manager Aquatech China at RAI Amsterdam.
 

The Aquatech China exhibition offers an ideal opportunity for companies to launch or build their business in China. With all the major players present, companies can do business directly and can establish contacts for the partnerships that are needed to succeed in the Chinese market. Another important step in accessing the Chinese water market is learning how to adapt your products and services according to Chinese requirements. The exhibition is the ideal platform to discuss what the local needs and requirements are.

Roundup: Latest news and reports on opportunities in the Chinese water market

 

The control valve market is expected to grow from USD 7.48 billion in 2018 to USD 10.62 billion by 2024, at a CAGR of 6.02% from 2018 to 2024

  • These valves are being utilized for controlling fluid flow by varying the size of the flow passage as directed by a signal from a controller.
  • The control valve market in Asia Pacific (APAC) held the largest share of the overall market in 2017 and is expected to grow at the highest CAGR during the forecast period. Major factors driving the growth of the control valve market in APAC include the increasing population and rising focus of emerging economies on investing in industries such as energy & power, oil & gas, water & wastewater treatment, chemicals, and construction in which control valves are used.
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Growth expected for global water market and wastewater recovery

  • According to forecasts by Global Water Intelligence (GWI), the global water market is projected to reach a value of $914.9 billion by 2023. The rise is attributed to a recovering global economy, high commodity and oil prices, as well as water quality and infrastructure plans in China, Saudi Arabia and Southeast Asia.
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Rural action plan and called for the investment of one trillion yuan

  • China’s Environment Ministry approved a new rural action plan and called for the investment of one trillion yuan (AUS$197.7 billion) for the construction of more sewage pipelines and wastewater treatment plants
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China’s uneven distribution of water sources presents unique difficulties to China as demand for water is increasing rapidly

  • The main problem facing China is how to distribute its water, rather than lack of water per se. 80% of China’s water supply lies in southern China. But this water cannot be used by the population of 12 Chinese provinces representing 41% of its total population, 38% of Chinese agriculture, 46% of its industry, and 50% of its power generation.
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China’s economic security is imperilled by water shortages

  • Recent analysis suggests that China’s economic security is imperilled by water shortages and that a crisis is looming. Indeed, a water crisis often seems to lurk just around the corner, particularly for Beijing
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New Water Pollution and Prevention Control Law (“Water Ten Law”) in China

  • Issued in 2015, China’s “Water Ten Plan” sets tough action on water pollution prevention & control. It is an umbrella plan that ties in other key policies and accounts for water scarcity & geographical mismatch. Most importantly, it underlines China’s seriousness in tackling its water issues.
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China inks deal in Iran for co-manufacturing desalination equipment

  • Once this factory is established, about 50,000 one-meter filter with 8-inch diameter will be produced annually to be used for desalinating drinking water and in petrochemical and steel industries. The report put the total investment needed for the construction of this factory at 1 trillion rials (about $24 million).
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By 2024, Smart Water Metering Market in Asia Pacific to hit 6 million units

  • Asia Pacific Smart Water Metering Market is estimated to surpass USD 300 million by 2024. Growing concern to limit the consumption level on account of defined policies for sustainable water use will stimulate the Asia Pacific smart water metering market growth.
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Investing in China. China and urbanisation

  • As people shift from living an agrarian lifestyle to an urbanized one, a lot has to happen. Cities need to be built, which means growth in infrastructure, commerce and other services.
  • Growth in the 21st century will likely belong to China, just as growth in the 20th century belonged to the United States. That growth will likely create trillions of dollars in economic output in the coming years, which is why many people continue to consider the investment opportunities in China.
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North of China suffering from water scarcity

  • ’In China, some studies point to 12 provinces in the north suffering from water scarcity. Availability of less than 1,000 cubic metres per person per year is the internationally accepted measure of water scarcity. The country is also beset with water pollution challenges, after years of contamination from industrial and household waste.’
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Water Infrastructure is Thirsty for Investment

  • China’s political and social pressures for more effective and resilient water infrastructure grows, the funding gap becomes more glaring. The investment in infrastructure required by China’s urbanization and economic growth is estimated to be $6.74 trillion between 2014 and 2020. The People’s Bank of China estimated that an annual investment of at least US$320-640 billion will be required to specifically address environmental and climate change issues.
  • China’s investment in wastewater treatment, flood defense, and ecological restoration has been increasing annually: From 2011 to 2015, the investment in water infrastructure amounted to $310 billion, an average of $62 billion a year, and in 2016, investments reached more than $90 billion.
  • These investments in water infrastructure are expected to continue to increase, due to China’s plans to address water pollution and its long-term plans to secure its water supply, reduce degradation of its hydrological environment, and increase resilience to droughts and floods, as outlined in the Water Pollution Control Action Plan and Water Resources Development and Reform 13th Five Year Plan (FYP).
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China: A Watershed Moment for Water Governance

  • Effective management of water resources is central to China’s economic prosperity. Despite significant investments in water management and infrastructure, more tangible innovative policies and incentives are required to strengthen and better integrate water management at both national and regional levels. Providing more water for environmental uses, expanding the use of market mechanisms to driver water efficiency and adopting transformational approaches to fight water pollutions are among the key tasks for the rapidly growing economy.
  • In the past 50 years, China has made significant investments in water management and infrastructure, which has led to significant achievements in water supply, irrigation, flood control and hydropower generation. However, the country is still facing acute challenges with respect to both water quantity and quality.
  • These investments in water infrastructure are expected to continue to increase, due to China’s plans to address water pollution and its long-term plans to secure its water supply, reduce degradation of its hydrological environment, and increase resilience to droughts and floods, as outlined in the Water Pollution Control Action Plan and Water Resources Development and Reform 13th Five Year Plan (FYP).
Read more »

 

China’s environmental market - overview

  • Investment in the environmental sector is projected to exceed RMB15 trillion during the 13th Five-Year Plan period (2016-2020), with the focus of industrial development shifting from pollution control to environmental quality improvements. In addition to this, a large number of environmental projects, such as remediation of polluted soil and river sediment and the construction of ‘sponge cities’, will be developed via public-private partnerships (PPPs), which should also attract trillions of yuan in investment.
  • The environmental market in China covers the equipment manufacturing and engineering of a wide spectrum of technologies and their related services. It includes the provision of equipment and services for environmental pollution control, the removal of pollutants, waste treatment, energy conservation, clean production, as well as the collection, safe disposal, recycling and recovery of waste resources.
Read more »

 


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