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Environmental technologies to China

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(Last updated: 3 Apr 2012)

Trends and opportunities

Clean Energy and Environment - China

Be part of a unique initiative to encourage exports and two-way investment between Australia and China in clean energy, green-building, water and the environment.

Austrade China’s Clean Energy and Environment (CEE) team has developed a coordinated marketing platform to introduce Australian firms to eco-projects, opportunities and contacts in China.

Austrade has developed a Chinese language directory to showcase the capabilities of Australian water, environmental, clean energy and green-building companies. The directory has been marketed to Chinese organisations pursuing major projects in relevant industry sectors, organisations such as urban and rural local authorities, state-owned conglomerates, energy generators and property managers.

Companies in this initiative are also able to connect via Austrade to CEE advisors working on-the-ground in China. These CEE advisors provide services ranging from legal, advisory, funding and business matching.

To apply to join our free CEE China Directory, please apply here.

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 standards.

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.

China’s environmental protection priorities (2011-2015)

China aims to shift its investment focus from infrastructure to encourage the development of environment-friendly projects. The 'National 12th Five-year Plan on Environmental Protection' released by the State Council on 15 December 2011, complimented China’s achievement in pollution control over the past five years and set new goals for the future.

(Source: www.china-briefing.com; news.xinhuanet.com)

It is estimated that total output of environmental protection and energy conservation industry will account for over seven per cent of GDP. The plan states there will be RMB3.4 trillion of investment demand in the China environment protection area from 2011 to 2015. RMB1.5 trillion of investment will be required in eight major prioritised projects including:

  • Major pollutants reduction, such as sewage treatment, sludge treatment, desulfurisation and de-nitrification
  • Living environment improvement, such as water/air/soil quality improvement
  • Environmental protection in rural areas, such as non-point source pollution control from agriculture
  • Ecological preservation, such nature reserve development and biodiversity conservation
  • Environment risk prevention, such as prevention and control of heavy metal/hazardous chemicals pollution and persistent organic pollutants
  • Nuclear safety, such as nuclear safety systems/technology development and radiation monitoring
  • Environmental infrastructure, such as waste treatment facilities development and projects on water supply security
  • Environmental monitoring, such as environmental monitoring capability development and talent training

In R&D, China will increase science and technology research investment in the area of environment and resources protection. Five important focal areas for these increased efforts are:

  • Advanced environment monitoring
  • Technology for pollution emergencies
  • Regional clean air key technology
  • Contaminated soil/site remediation
  • Risk control technology for chemicals

Opportunities

Technical cooperation and joint ventures are of most interest to local environmental companies. Increasing investment in environmental protection is providing a range of opportunities for Australian companies:

  • Advanced sewerage treatment processes and biotechnology treatment technologies
  • Nitrogen oxide and ammonia nitrogen reduction and removal technologies
  • Heavy metal reduction and treatment technologies
  • Special waste, eg. electronic, magnetic, lead battery etc.) management, recycling and disposal
  • Soil and water remediation (including heavy metal pollutant emission)
  • Domestic and industrial waste recycling and industrial waste stabilisation
  • Desulphurisation technologies
  • Air pollution control equipment
  • Noise control materials and equipment
  • Environmental monitoring instruments and automation control systems
  • Radioactive and electromagnetic wave pollution control
  • Industry energy conservation technologies
  • Green-building energy efficiency solutions
  • Renewable energy – IP transfer, management and maintenance
  • Carbon capture and treatment
  • Environmental emergency response systems 
  • Consulting services, eg. water resource management planning, risk assessment, green and energy-saving design, eco-city planning etc.)
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Tariffs, regulations and customs

Duties are imposed on the majority of imports to China. 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 where government encourages the development, 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 Standardization Administration of China and National Accreditation Centre for Environmental Conformity Assessment issue and monitor the relevant standards in China.

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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.

Having a local presence in the market, either via establishment of an office, working with a partner in China, or regular visits from Australia is fundamental to working effectively in China. Approaching the market with a long term strategy is also important.

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 Association of Environmental Protection Industry – www.cepi.com.cn/
China Environment – www.chinaenvironment.com (Chinese)
China Environmental Industry Network – www.cein.net
Cleaner Production in China – www.chinacp.com
Institute of Environment & Development – www.ied.org.cn
China Greentech Report 2011 - www.china-greentech.com/

Government, business and trade resources for China

Ministry of Environmental Protection – http://english.sepa.gov.cn

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Contact details

The Australian Trade Commission – Austrade – is the Australian Government’s trade, investment and education promotion agency.

Through a global network of offices, Austrade assists Australian companies to grow their international business, attracts productive foreign direct investment into Australia and promotes Australia’s education sector internationally.

For more information on how Austrade can assist you, contact us on:

Australia ph: 13 28 78 | Email: info@austrade.gov.au

A list of Austrade offices (in alphabetical order of country) is also available.

Markets

For industries in bold, Austrade is able to offers a full suite of services

Austrade China’s Clean Energy and Environment Newsletter

Publications

Winning Projects in China’s Clean Energy and Environment Sector (PDF, 421KB)
April 2012

Jane Caforio
Trade Commissioner, Beijing

Upcoming Events

Read the latest information on key Clean Energy and Environment events in China (PDF, 170KB)

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