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Growing Green Market in China

Wednesday, December 1st, 2010
Green market in china

China is emerging as one of the most prominent “green” business markets.

For the last three decades, China has shown remarkable economic growth. It brought prosperity to the nation and some of its people. However, being the world’s factory had serious side effect such as poor air quality, polluted water and lack of energy. China is the world largest carbon emission nation as of 2010. The Chinese government is slowly awakening to the importance of environmental friendly businesses. It is not just because of external pressure, but also because of the importance green industries have on the momentum of future economic growth. The Chinese government announcement at THE Copenhagen Climate Change summit in 2009 that the nation plans to reduce carbon emission by 40 up to 50 percent in 2020 compared to those of 2005. Korea Trade Investment Promotion Agency expects that Chinese carbon emissions are likely to hit a peak between year 2030 and 2035.

The Chinese government is pushing plans in five categories: Economic structure, Industrial structure, energy structure, communication structure, and building construction. Throughout this project, the government aims to encourage low carbon product exports, low carbon consumption, electric car use, and low carbon construction.

China is involved in developing alternative energy sources such as renewable energy. Since 2009 Chinese government has i$00 billion stimulation. Also, last March, the government announced its renewable energy generation program.

China focuses on solar energy and wind power. Two thirds of Chinese land is blessed with 2,200 hours of sunlight annually, which is very suitable for generating solar energy. KO TRA expects that Chinese solar energy and wind power markets have a bright outlook and the market will be a fierce battlefield by multinational companies. Big foreign companies would like to join the market, small- and medium-size companies that want to enter the market should be technically advanced with a proactive attitude, KO KO TRA advised.

Market experts also mentioned that sewage disposal plants and incineration plants are future promising markets in China. Unlike carbon emission reduction and renewable energy, these markets still get less attention but these are also as big as the former. Currently, Chinese manufacturing of sewage treatment equipment is outdated, considered equivalent to the 1980’s of developed countries, according to the market experts. A majority of Chinese sewage treatment manufacturers produce low-tech small facilities, while only few Chinese companies can supply sewage treatment plant equipment as a whole. As Chinese sewage treatment market has grown rapidly, there is high demand for related plant equipment and facilities. But Chinese companies have not met the need due to its lower technologies.

A spokesperson at KO TRA said “Korean companies and foreign companies with higher technologies, Chinese market is kind of a blue ocean. It also has high future growth momentum.”

Incineration plants are one of the rosy markets as well. The Chinese government plans to finish 83 new incineration plants that can generate electricity by the end of this year. The government expects that it would treat up to 10 percent of total annual waste. KO TRA recommends that Korean companies eye grate furnace incineration plants to enter the market.

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