China Insights

GCiS shares a mix of China economy and business observations, industry articles based on recently published multi-client reports, infographics composed with public statistics and annual reviews of China demographics.

 

Anti-Corrosion Coating Suppliers Positive on Future Market Prospects in China

This article is based on a GCiS multi-client report: China Anti-Corrosive Coatings Market Research Report.

Over the last few years, the growth of China's anti-corrosion coatings market has dropped precipitously. According to a recent report from GCiS China Strategic research, overall market growth was just 2.8% in 2013 to a RMB 36 Bn or roughly USD 5.8 Bn market - far worse than the 13% growth experienced as recently as 2011. However, both domestic and multinational companies expect conditions to improve significantly over the next few years, pointing to developments below the surface of this headline growth figure. Industry insiders report that the recent slow growth is largely a result of difficulties in the shipbuilding and container sector, while other major end-user industry segments such as construction and petrochemicals are seeing much stronger performance. Improving technology and mounting domestic demand for high-quality products, alongside a likely future revival of the shipbuilding sector, are likely to lead to much healthier growth rates in approximately three to five years.

Read more ...

Fabric Structure Construction in Second Tier Cities in China Supports Architectural Membrane Market

This article is based on a GCiS multi-client report: China Architecture Membrane Market Research Report.

With the increasing construction of fabric structures, architectural membrane is gaining increasing prominence in China due to its combination of positive qualities such as heat insulation, sound insulation, light-weight for easy transportation, hydrophobic properties that allow rain to create a self-cleaning effect and the semi-transparency that allows UV from sunlight to create an automatic bleaching effect and more. With increasing income level in China, booming demands for leisure and travel will drive up the demand for fabric structure. Given that majority of the current fabric structure projects that use membrane materials are public investment projects such as stadiums and airports and do not generate much profit directly, the growth in this sector is mainly supported by the government’s public infrastructure growth strategies and is subject to high volatility from policy changes. However GCiS believes that it is not likely to be a major concern for the industry’s development in the near future as China is still investing heavily into its second-tier cities. 

Read more ...

Smart Grids in China – a Reality Check

China’s huge population and rapidly growing economy means that the country’s demand for power is seeing extremely fast growth. At the same time, its historically underdeveloped power grid and strong government control over this sector mean that China has strong opportunities to leapfrog more developed countries in terms of power grid technology. China’s commitment to building out a world-class “strong and smart grid” has meant that the country’s 2013 smart grid investment was the largest in the world.

China’s Smart Grid Strategy: Heavy investment in a “strong and smart grid”

China’s current overall smart grid strategy was set out in the 12th Five-Year Plan, released in 2011, and its supplementary Special Plan for Major Smart Grid Science & Technology Industrialization Projects. This document focuses on the development of large-scale renewable energy technology, along with grid support for these technologies and smart distribution and transmission technology. This is the first specific mention of smart grids in the country’s five-year plan, but it builds on trends that have been ongoing for years or decades.

The country’s largest grid operator, State Grid Corporation of China (SGCC), has led the push towards smart grid technologies. SGCC launched its “Smart Grid Umbrella Plan” in 2009, calling for a total investment of RMB 384 Bn into smart grid technologies from 2009-2020 as part of a RMB 3.45 Tn “strong and smart grid” investment. Smart meters and substations make up an overall majority of this investment, while upgrades to transmission and distribution networks, along with monitoring, communications and scheduling, make up the remainder. In comparison, smaller operator China Southern Grid (CSG) puts much less emphasis on “smart” technologies, although like State Grid it is in the process of a substantial smart meter rollout.

Read more ...

Air Pollution in China Today - Emissions, APC Equipment and the Effect of the 12th 5-Year Plan

This article is based on a GCiS multi-client report: China Air Pollution Control Equipment Market Research Report.

Air pollution control (APC) has been prominently included as one of the most important targets for the Chinese government in its 12th 5-year plan. This article takes a look at air pollution targets in China and the effect of industrial APC equipment, including particulate matter control, desulfurization and denitrification.

Read more ...

Pumping China – Domestic gear pump market boom or bust?

This article is based on a GCiS multi-client report: China Hydraulic Gear Pumps Market Research Report

The purpose of this article is to gauge the potential growth of China’s hydraulic gear pump market and propose that there are still significant potential opportunities for businesses to thrive in this industry sector. To answer this, the article will focus on 3 main aspects, the market trend, existing competition and driving vs. inhibiting forces.

Read more ...