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.

 

Submersible Pumps in China

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

China's submersible pumps industry is seeing strong domestic support from the municipal, construction and mining sectors. With ongoing commercial and residential development in addition to the modernization of tier 2 and 3 cities, municipal purchases especially are driving the industry. The market is fairly concentrated and competition is strong, especially in the low end of the market. High quality foreign imports represent around 5% of the market, while exports count for around 25%. Top quality products are seeing threats from illegal counterfiets, protection of IP still seen as a significant problem for foreign players to overcome.

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Cogeneration in China - Opportunities for International Suppliers

This article is based on a GCiS multi-client report: China Power Cogeneration (CHP) Market Research Report.

As the world's leading energy consumer, and facing deteriorating environmental conditions, China plans a massive promotion of alternative energy over fossil fuel dependence in its newest five-year plan. At the end of 2015, alternative energy, including solar, wind, biofuel, and hydro energy, is expected to account for 30% of total generation capacity. But while attention has been focused towards new energy sources, cogeneration, a traditional yet more technically mature way of energy saving, is being neglected. In contrast with new energy, where efficiency and scalability are major obstacles to profit, significant efficiency gains at existing fossil fuel power plants can be obtained through cogeneration. 

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China's Solar Expectations Likely to Fall Short

Great expectations are being placed on China’s solar power market, for PV in particular. Some Chinese authorities expect China’s own uptake of PV solar power to compensate for the continuing decrease in PV panel exports by China’s PV panel industry, which accounts for over 50% of global capacity. And a recent report by the Pew Charitable Funds projects that China’s installed solar capacity will reach 50 GW by 2020, up from 3 GW in 2011- and expects China to take the lead in solar, even surpassing Germany, which as of 2011 accounted for over 40% world capacity- compared to 5% for China.

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Chinese Companies Coming to Your Shore

Americans buy hundreds of Chinese-made products from Wal-Mart and other stores, from towels to radios to glasses, though most would be hard pressed to name a single Chinese brand. Maybe some now know that Haier is Chinese, as is BYD, following Warren Buffet's investment in this car company. Mr. Buffet has driven a BYD, though the average American could not take one for a ride as BYD cars are not widely available in the US, and will not be in the near future.

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Outside the System in China

Does Private Enterprise Have a Chance in Today's China?

China is in the midst of testing economic theory. By current estimates more than 70% of China's economic output is controlled by the government. Yet China's economy has prospered in recent years while other economies have floundered, leading some to say that China offers an alternative economic model. Thus the question: Can a country prosper if its government-backed enterprises are allowed to control the lion‘s share of its economy and its private enterprises are stifled? Some might rephrase the question. How long can China's savings be used as the cushion for massive state controlled inefficiency and political patronage? While policy wonks, politicians and economists debate, the conditions on the ground for China's private enterprises are bad and getting worse.

Most debate regarding State control of the economy has focused on the role of China's SOEs (State Owned Enterprises) and strategic sectors such as finance & banking, telecommunications, transport, and energy. The reality is that these companies and sectors represent only the most visible components of state and SOE control. Like the visible part of the iceberg, thereunder hides the really dangerous part.

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