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.


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. 

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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.

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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.

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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.

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Headwind Likely Coming from Domestic Competitors in the Oil and Petrochemical Valve Market

Foreign valve suppliers in China will experience more head-on challenges from their domestic competitors in the near future.

This article is based on a GCiS multi-client report: China Oil and Petrochemical Valves Market Research Report.

Other than specialty areas where they are irreplaceable, multinational companies’ advantages in China’s market for some engineering products such as parts, components, machinery and equipment have become dimmer over the last few years. Products such as valves are no exception. Recent GCiS research finds that, despite recent growth in demand from oil and petrochemical industry in China, foreign suppliers will experience more head-on challenges from their domestic competitors.

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