Protests and other bad public relations force local governments increasingly to clean up sources of pollution, writes energy expert Bill Dodson in his cleantech website. Foreign companies have here great opportunities when they play their cards right.
During mid-2011 the central government designated 4.75 billion yuan (about US$700 million) in subsidies to establish 100 counties as green energy demonstration zones during 2011-15. By 2008 the government had already identified 50 national sustainable development experimental areas and over 100 provincial sustainable development experimental areas. Commensurate with the status is the extent to which cleantech production in the areas is actually “clean”; that is, in which any toxic waste production created is adequately recycled and managed.
If the waste must be stored, citizens are increasingly holding local authorities responsible for ensuring storage is safe and secure from leakage into surrounding soil and water sources. The most prominent experimental areas have been working to make themselves centers of excellence in cleantech production, and polishing green environment badges of honor…
Foreign investors that apply their waste disposal or recycling technologies to bear in these designated areas may be able to kick-start their operations in China more quickly than if they randomly target potential buyers throughout the country. Chinese operations are under duress to invest in state-of-the art waste management technologies only to the extent their local governments feel the heat of higher-level officialdom; or, less often, to the extent to which the companies want to develop global brands that differentiate them from the pack in China.
Global branding of cleantech requires the image of end-to-end application of maintaining environmental integrity in the manufacture of their products. Most Chinese companies, however, still see investments in proper waste disposal or recycling as a balance sheet liability they would prefer to leave to future generations to pay. Foreign suppliers who have local governments on their side find it easier to persuade such companies to adopt more efficient and effective waste management technologies.
Much more at the China Energy sector.
Bill Dodson is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers’ request form.
More on Bill Dodson and doing business in China at Storify.
- Rising costs forces Chinese factories to streamline – Bill Dodson (chinaherald.net)
- Building bridges on garbage – Bill Dodson (chinaspeakersbureau.info)
- The property industry is booming like crazy – Bill Dodson (chinaspeakersbureau.info)
- Building too fast in China – Bill Dodson (chinaspeakersbureau.info)