Water Pollution Control in China: Foreign Firms Have Competitive Advantages

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Controlling water pollution in China is a difficult proposition, with weak implementation of laws and penalties for polluting. Further muddying the waters are local governments’ lack of motivation to work with each other to tackle the problem. Still, more foreign enterprises are expected to enter the Chinese market to participate in water pollution control projects, according to IBISWorld, America’s largest publisher of industry research.

IBISWorld Market Research

IBISWorld Market Research

More foreign enterprises are expected to enter the Chinese market to participate in water pollution control projects.

Controlling water pollution in China is a difficult proposition, with weak implementation of laws and penalties for polluting. Further muddying the waters are local governments’ lack of motivation to work with each other to tackle the problem. Still, more foreign enterprises are expected to enter the Chinese market to participate in water pollution control projects, according to IBISWorld, America’s largest publisher of industry research.

Demand for water pollution control services comes mainly from government bodies in China, which are increasingly responsible for handling greater levels of pollution of inland waters and underground water. Out of the government's US$586 billion Economic Stimulus Package launched in late 2008, major investments were planned for environmental protection projects, especially water pollution control projects. By April 2009, about 10% of the US$33.7 billion investment from the Central Government had been made in such projects, covering regions around major rivers and lakes in China.

The greatest water pollution control problem in China is the difficulty in restricting pollutant discharges from enterprises. The implementation of laws and penalties tend to be weak in practice. Another problem is that local governments are not motivated sufficiently to address pollution issues under the current GDP-oriented assessment system for political achievements of officials. Finally, another problem is a lack of collaboration between different local governments, especially for cross-regional water pollution.

Despite these headwinds, more foreign enterprises are expected to enter the Chinese market to participate in water pollution control projects, which are highly welcomed by the Chinese Government. Foreign enterprises have competitive advantages in technologies, and therefore, their entry will further promote the industry's technology level.

Revenue within the industry is expected to total US$746.8 million in 2011, up 15.4% from 2010. In the five years through 2011, industry revenue is forecast to increase at an annualized rate of 17.0% due to strong and increasing demand from private firms and the government. In the next five years, industry revenue is expected to increase at an average annualized rate of 9.8%, totaling US$1.19 billion in 2016.

For more information, download IBISWorld’s report on Water Pollution Control industry in China
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The Water Pollution Control industry in China comprises establishments that are engaged in pollution control and treatment activities concerning inland waters, specifically rivers, lakes, reservoirs, other surface water forms and underground water. Sewage treatment in urban areas, oceanic water pollution control or activities of environmental protection administration are not included in this industry.

Main Activities
Collection and cleaning of waste in urban waters
Collection and cleaning of waste in rivers and lakes
Pollution control and treatment for rivers and lakes
Pollution control and treatment for underground water

Water Pollution Control in China Report Key Topics
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on 200 Chinese industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.cn or call 1-800-330-3772.

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Jordan Ho
IBISWorld
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