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Environmental technologies to China
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Direct access with our industry experts
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 This industry-country profile has been compiled by Shiming Tang, Senior Business Development Manager, Austrade Shanghai.
If you have a specific question regarding the information provided, please fill out the following enquiry form.
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(Last updated: 03 Apr 2008)
Trends and opportunities
The market
As China has progressed along the economic reform path, its environment has suffered degradation from rapid urbanisation and industrial development. Pollution and resource misuse have resulted in environmental damage in both the rural and urban settings.
China's environmental protection industry has developed in response to growing environmental degradation over the past two decades. The industry produces the majority of its own goods and services for pollution control and environmental protection though in some areas, the technology levels are low and below international standard.
China is experiencing the fastest growth in demand for environmental products and services in the world. It is estimated that environmental damage costs up to eight per cent of China's gross domestic product each year. The market is estimated to reach a value of US$60 billion by 2015.
It is reported that China’s investment in pollution control hit a record high of around US$35 billion in 2006, an increase of 7.5 per cent from the previous year and accounting for 1.23 per cent of the annual GDP.
General overview
a) China’s Environmental Priorities (2006-2010)
Five environmental targets have been set in the 11th Five-Year Plan (2006-2010) for National Economic and Social Development as follows:
- Total discharge of major pollutants discharged to be decreased by 10 per cent
- Urban sewage and domestic waste treatment rate to be increased to 70 per cent and 60 per cent respectively
- Energy consumption per unit of GDP to be reduced by 20 per cent
- Water consumption per unit of value-added industrial output to be reduced by 30 per cent
- Forest coverage to be raised from 18.2 to 20 per cent
b) Government’s Targets for Environmental Protection Investments
(2006-2010)
A total of US$175 billion in environmental protection investments planned for 2006-2010, nearly double that in 2001-2005.
Environmental protection investments as a percentage of GDP to rise to 1.5 per cent during 2006-2010 as compared with 1.3 per cent for 2001-2005.
c) Facts about the China Environmental Protection Industry as at 2006
| Number of companies |
35,000 |
| Number of employees |
3,000,000 |
| Total value of environmental-related products sold |
US$75 billion |
| Total profits |
US$6.5 billion |
Total value of environmental-related products
to be sold in 2010 (forecast) |
US$146 billion |
Source: State Environmental Protection Administration SEPA (2007)
Opportunities
China is primarily interested in importing technologies rather than equipment. It costs less to import technologies to upgrade its domestic equipment manufacturing.
Technical cooperation and joint ventures are therefore of most interest to local environmental companies. Increasing investment in environmental protection and China's World Trade Organization accession, are providing a range of opportunities for Australian companies:
- Advanced sewerage treatment processes and biotechnology treatment technologies
- Desulphurisation technologies
- Special waste (eg. electronic, magnetic, etc) management, recycling and disposal
- Noise control materials and equipment
- Environmental emergency response systems
- Clean production processes
- Renewable energies
- Consulting services (eg. planning, risk assessment, green and energy-saving design, etc)
- Meters and instruments for environmental monitoring and automation control systems
- Radioactive and electromagnetic wave pollution control
Other sectors offering potential opportunities for Australian suppliers include:
- Clean production technologies
- Energy-efficient technologies
- Industrial effluent treatment
- Air pollution control equipment
- Monitoring systems
- Waste recovery, reuse and recycling
- Green products
- Urban environmental protection planning
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Tariffs, regulations and customs
Duties are imposed on the majority of imports to China. The accession of China to the World Trade Organization has meant that at present, tariffs are constantly under review. Tariff rates vary according to the type of material, the components and the intended use of the product.
Value added tax of 17 per cent is applied to all imports, except those specifically used for manufacturing for re-export. Low tariff rates are applied to certain products in sectors the government is trying to encourage (eg. hi-tech and energy savings products).
Potential exporters are advised to make direct contact with Austrade in order to obtain the most up-to-date information on the relevant sector tariffs and regulations.
Industry standards
The following bodies issue and monitor the relevant standards in China:
- China state standards - www.stdcn.com (Chinese only)
- National Accreditation Centre for Environmental Conformity Assessment - www.naceca.org
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Marketing your products and services
Market entry
There are a range of options for entering the China environment sector:
- Establishing long-term relationships with local design institutes who can recommend your products to end users.
- Approaching customers and selling products directly.
- Appointing distributors or agents if you are looking at a long-term strategy.
- Linking up with local or international companies with an established presence in the market to co-bid for projects.
- Attending bidding directly for consulting service projects or projects with services to be procured directly by international funding organisations such as the World Bank and the Asian Development Bank.
Prepare yourself for the market by undertaking a range of market research, business development and promotional activities. Commission a market assessment by local experts for your products and services and visit the market regularly to build your business. The promotional aspects of your marketing strategy will be critical to success:
- Develop a Chinese language product introduction or company profile.
- Organise commercial and technical seminars for potential customers, architects and local authorities.
- Participate in industry-specific tradeshows.
- Provide promotional, technical and service support to distributors and customers.
Online trading is not commonly used in the environmental protection industry in China. Environmental protection projects and product procurements are published on websites of central and local environmental government authorities and industrial associations.
Distribution channels
Distribution channels vary depending on products and services. Products are commonly imported into China and distributed through local agents or distributors. The number of companies registered to import and export products is controlled in China, however, end users, local agents or distributors who don't have an import licence can import through a trading company with an import licence.
As China is a large country with varying levels of economic development across its regions, it is not recommended that you limit yourself to a single distributor. Multiple distributors and agents with geographically exclusive areas may be more effective.
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Links and industry contacts
Environmental–related resources
China Environment – www.chinaenvironment.com (Chinese)
Cleaner Production in China – www.chinacp.com
Institute of Environment & Development – www.ied.org.cn
China Association of Environmental Protection Industry – www.cepi.com.cn
9 Sanlihe Road, Haiding District
Beijing 100835
Tel: +86 10 6839 3827
Fax: +86 10 6839 3748
Government, business and trade resources for China
State Environmental Protection Administration of China – http://english.sepa.gov.cn
115 Xizhimennei Nanxiaojie
Beijing, 100035
Tel: +86 10 6615 3366
Fax: +86 10 6615 1768
Email: miyichu@cenpok.net
Media
China Environmental Industry Network – www.cein.net
China Online – www.chinaonline.com |
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Contact details
The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.
Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.
Austrade:
- Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
- Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
- Administers the Export Market Development Grants scheme.
- Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
- Provides advice to the Australian Government on its trade and investment development activities.
- Delivers consular, passport and other government services in designated overseas locations.
A list of Austrade offices (in alphabetical order of country) is available.
More information
For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au |
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