This report provides an overview of industrial wastewater policy in China, specifically analysing opportunities for EU SMEs in two of the key regions in China, namely Shandong province and Sichuan province.
Generally, no policy barriers are preventing EU SMEs from entering the Chinese wastewater treatment market. However, the establishment of a joint venture (“JV”) with Chinese distributors, or of a wholly foreign-owned enterprise (“WFOE”), must follow several procedures and policies, which are more time-consuming and comprehensive in scope to adhere to than is establishing a Chinese company.
Like all international companies, EU SMEs should have patience and resources when adapting to Chinese culture, laws, and political situation.
The PPP model has developed over many years in China and is highly recommended by the Chinese government. EU SMEs have the chance to get involved in the construction and operation of infrastructure projects related to wastewater treatment, with the precondition that they co-operate with reliable Chinese partners. Nevertheless, it is not yet mature, and EU SMEs need to prepare comprehensive risk management strategies that cover, amongst others, legal and governmental issues before entering the Chinese PPP market.
Promoted by the national subsidy policies, investment in the Chinese environmental protection industry is undergoing rapid growth, such as “black-odorous water” treatment and “sponge city” construction. Besides, the development of Zero Liquid Discharge (ZLD) is another trend that demonstrates the size, diversity, and evolving nature of the market for wastewater treatment in China.
The difference between the quality of technology and management seen in Chinese companies and in EU SMEs is shrinking. In the past, these were areas where EU SMEs held advantages in the China market, yet that is now becoming less common. Considering this, the competitive advantages of EU SMEs are reducing.
A certain amount of investment is required for EU SMEs to penetrate the market in China, and this will directly affect their development strategies. EU SME decision-makers need to decide whether they are willing, and whether it is affordable, to make this investment, and how much support they will receive from employees and other stakeholders.
In fact, identifying the right partners and establishing good relationship with key stakeholders, as well as deeply analyzing the market, identifying the most suitable exhibitions to attend and choosing a suitable marketing strategy are only some of the key factors to be taken into account when deciding to enter the Chinese market.
This EU SME Centre Market Report is specifically customized for the industry players with a strong focus on some priority regions in China. Download the full report for free and read more in details.
Key Contents
1. Introduction
2. Policies
– Raw Water Emission Standards
– Municipal Wastewater Plant Standards
3. Key Stakeholders
4. Market Potential
5. Case Studies
