Current Trends In The China Water Market

Innovation of technologies
There is increasing awareness of the need for adoption of new technologies and methods by the local companies and government bodies to increase the efficiency in the industry. Chinese companies in this industry have traditionally been lagging behind their multinational counterparts in terms of technology innovation and this has limited their ability to compete in the larger projects.

Increasing number of players in the industry
The Chinese water market has entered the growing stage, which is reflected by the rising number of companies in the industry. As a result of the privatisation policy of public municipal infrastructure and the high return on investment, many companies including multinationals have started to penetrate the market. The presence of foreign investment is now felt in all facets of the water supply and wastewater treatment industry in China from direct construction and operation of treatment plants through BOT to joint ventures and wholly owned subsidiaries. Several large established multinationals such as Veolia, Suez and RWE Thames have all established their presence in the PRC market.

Move towards privatisation
The water supply and wastewater treatment market in China is currently in the process of transition from a predominantly state-owned sector to a more market base sector through the rationalisation of water tariffs and the opening up of the sector to private and foreign investors. Outsourced management such as BOT and TOT are becoming popular models in the industry. Privatisation is considered to be the most efficient way to address the fund shortage for investment in the development of municipal water supply and wastewater treatment projects.