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China's Green Revolution:

China's investment in green means green for US.

Some of the best prospects in this field:

• Municipal and industry wastewater treatment technology (sludge, auto-control)
• Hazardous waste and medical waste treatment technology
• Waste-to-Energy technologies
• De-SOx and De-NOx technologies
• Air and water monitoring equipment

It is no secret that China is suffering from acute environmental toxicity. Unrestrained plundering of their natural resource base, high-density population, heavy reliance on outdated technology, and uninhibited urban and industrial expansion has taken a heavy toll. In response to this situation, the Chinese government has generated a storm of environmental legislation, shut down thousands of small, dirty factories, and decreed by 2010 the country will reduce its polluting discharges and energy consumption.

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With $12 billion already invested in solar, cleaner coal, wind, and biomass power generation since 2007, China has committed an additional $175 billion in environmental technologies to monitor and control emissions, water quality, and air pollution.

Water:

China suffers severe water scarcity and pollution issues. With only one-quarter of the world average China has very low and unevenly distributed water resources per capita. Today 30% of China's cities currently experience water scarcity. According to published reports, 30% of China's lakes, rivers, and costal areas are contaminated by agricultural, municipal, and industrial discharges. Estimates claim that 300 million people drink tainted water daily.

Within the current 5 yr plan the central government has set ambitious goals. The two major targets are; Providing safe drinking water for 100 million people and treating 70% of sewage generated by 2010. So far the results have been underwhelming. Sewage alone is estimated to grow to 64 billion tons by 2010.

The central government is ready to match their goals with cash. The amount of new construction and upgrades to existing facilities has created enormous demand for related equipment, consulting, and technology.

U.S. companies face stiff competition from Japan, Germany, France, and other European countries. However, high-tech U.S. products in this field are of good quality and reasonable price, which should help U.S. producers capture a sizable market share.

In fact, the U.S. exportation of water monitoring devices to China has shown a steady increase over the past decade, quadrupling in sales over that span, while gas, liquid, and electrical monitoring has tripled.

Air:

China has come to realize that desulfurization is a critical factor in air quality and pollution control. In fact the market is booming for De-NOx and flue gas technology and equipment suppliers. The 12th cycle in China's 5-year plans assumes further expansion of these markets.

According to China's Ministry of Environmental Protection, nearly 40% of cities do not meet national air quality standards. 281 of the 500 cities monitored suffered acid rain – a number that grows as more cities add monitoring technology.

The response from the central government is to require all new and renovated coal fired power generators to install De-NOx equipment. By 2010 the market value for this opportunity will exceed $1 billion US with less than 10% market penetration and will continue to grow as additional regulation is enacted and enforced.

Solid Waste:

China's ability to treat and manage solid waste is vastly outmatched by its capacity to generate municipal solid waste. This mismatch holds remarkable opportunities for US MSW technology and equipment providers. According to government statistics of 661 cities 334 have no MSW treatment facilities.

The central government has again set lofty goals backed with an investment of nearly $15 billion USD to build fixed MSW treatment facilities. China has committed to pursuing a policy of "reduce and recycle."

Hazardous waste and medical waste are targeted for expansion and updating as well. 300 centralized medical waste facilities are being built and $2 billion USD has been allocated for hazardous waste treatment and storage through 2010.

Excellent market opportunities exist for US venders despite strong domestic and EU competition. US equipment and technology enjoys a good reputation among the Chinese business community as high quality with a long service life.

Market Assessment

Several important factors must be considered when establishing or growing any sales channel:

In the case of China the products must be reasonably priced and developed for the Chinese market.

Access to government officials, agents and distributors, end-users and potential customers, trade officials and organizations, and representation at trade shows are all critical needs for success.

While the economy is the ultimate factor in determining a company's growth strategy, it is clear that US companies with a commitment to environmental technologies would benefit from dedicated sales efforts and infrastructures in China.

EWB China Market Research and Sales Management

East-West-Bridge Inc. provides China market research and sales strategy. Our ongoing research of China industry, new prospects, and current trends give our clients a competitive edge. Identifying all trade shows, expos, distribution partners, government channels, and business associations to be considered when implementing a successful market strategy is imperative in the China market.

A key element in our unique approach is to utilize a full-time Sales Representative for every client. We recruit a representative for our clients based on each client's technical specifications and requirements. Hired through East West Bridge full-time, the dedicated sales representative conducts the client's business and passes the client's business card and materials to all prospects. This representative works entirely for the client, but is supported and managed by EWB. Additional representatives can be added as business growth requires.

We provide ongoing operations management, "The Back Office" to facilitate human relations, administration, accounting, legal, logistics, permits and licenses, customs, government/safety compliance, and oversight to ensure that business is conducted in compliance with China expectations and US style reporting and governance.

Our professional office space and equipment provides a downtown professional office workspace, with common areas, a conference room, show room, furnishings, storage area, computers, internet, fax, phone, and full departmental support along with a friendly and positive company culture.

East-West-Bridge enjoys a strong knowledge and expertise of the China market:

• We have superior awareness of sensitive issues such as Asian business ethics, intellectual property, employee loyalty, and business transparency.
• We help you avoid the many pitfalls commonplace for newcomers to the Asian marketplace and contractual subtleties that could derail your investment.
• We carry strong affiliations with trade associations, government branches, and accredited companies necessary for strategic partnerships.
• We boast a deep understanding of provincial market trends. Over 20 years experience on a variety of technical issues allows us to penetrate markets with high barriers to entry.

Finally, our team operates with integrity every step of the way. We pride ourselves on delivering service, smart marketing, strong human resources, expert sales guidance, professional financial compliance, experienced operators, and seasoned Government and trade organization relationships.

East-West-Bridge Inc and CEO Cort Smith are recognized as experts in the China market business development arena. We want to share that experience with your firm and invite you to subscribe to our newsletter or webcast opportunities. Call 702-616-1789 or email us today to get your China Bridge started!

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