Business intelligence on the chinese greentech market

EUROPEAN CLEANTECH
INTERNATIONALISATION
INITIATIVE (EC2I)
Collection of Chinese Business Intelligence
This project was funded by the European Union´s COSME Programme (2014-2020).

Date : 30/05/2018 Page 2 / 14
Tableof Contents
Collection of Chinese Business Intelligence.................................................................................... 1
I. Cleantech Key Areas for European SMEs ........................................................................................ 3
II. Smart City & Digitalisation............................................................................................................... 4
III. Green Energy, Energy Efficiency & Smart Grids.......................................................................... 6
IV. Waste Management & Recycling ................................................................................................ 8
V. Resource Management (Water & Air & Soil-Management) ......................................................... 10
VI. “Market entry: Success factors and challenges for European Cleantech SME”........................ 14
List ofAbbreviations
COSME Competitiveness of Enterprises and Small and Medium-sized Enterprises
DRC Development Research Center of the State Council
EC2i European Cleantech Internationalization Initiative
POE Privately-Owned Enterprises
PRC People's Republic of China
MLR Ministry of Land and Resources of the People's Republic of China
MOFCOM MINISTRY OF COMMERCE, PEOPLE'S REPUBLIC OF CHINA
MOHURD Ministry of Housing and Urban-Rural Development
SME Small and Medium-sized enterprises
SOE State-Owned Enterprises

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I. Cleantech Key Areas for European SMEs
The European Cleantech Internationalisation Initiative (EC2i) integrates the goals and strategies of five
leading European cleantech clusters with capabilities spanning value chains emerging at the
intersection of environmental technology and digitalization. The main objective of this initiative is to
implement a joint internationalisation strategy to help SMEs exploit the opportunities for collaboration
presented by the complementary capabilities of businesses in all five clusters and capitalize on their
world-leading technologies to tap into demand for smart and sustainable solutions in China.
Therefore, the following value-chain-based key areas have been defined according to the areas of
strength of the SMEs represented in the project consortium and according to current business
opportunities within environmental technologies and digitalisation:
a) Smart City & Urban Technologies
b) Green Energy & Smart Grids
c) Waste Management & Recycling
d) Resource Management (Water, Air, Soil, etc.)
e) Digitalisation & Efficiency (as cross sectoral topics in the 4 defined focus areas above)
For each of these key areas a template for collecting the most important market information (market
environment & trends; market participants; legal framework; business opportunities for European
SME, strategic partners & contact points for market entry) and success factors and challenges for
European Cleantech SME for the Chinese market entry were developed and sent out to strategic
partner in China.
The aim of the Business Intelligence is to generate a two-pager as a kind of DashBoard for each key
area which can be send to interested SMEs in preparation for the Matchmaking Mission to Shanghai
and Nanjing on November 13th
till 16th
of 2018. Furthermore, a webinar will be held on the 12th
of
September 2018, where the results of the business Intelligence collected will be presented to the SME
participating in the Matchmaking Mission.
Therefore, the following templates were filled out based on the input and feedback from strategic
partners in the target market (special thanks to Umore Consulting and Advantage Austria) in order to
provide the participating SME with a summary of the latest market information and potential business
opportunities. The presented Business Intelligence make no claim to completeness but are instead
intended to give an overview of the current market developments. A focus was put on Shanghai and
surrounding, as the first Matchmaking Mission takes place in combination with the CleanConnect
Conference in November 2018.
In the following the results are presented for each Cleantech Key Area.

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Equipment &
Infrastructure
Connectivity:
Data Collection
& Storage
Data Analytics
System
application
II. Smart City & Digitalisation
The key area “Smart City & Digitalisation” is structured into the following value chain elements:
They include for example technologies in the following fields: intelligent bicycle logistic, efficient
lightning, energy facades, mobility solutions, etc.
Market Environment & Trends
 China’s urbanization progress and the national plan:
increasing the national urbanization rate from 57% to
60% in the 13th
5-year plan (2016-2020)
 276 Smart City Trial Cities (by the end of 2016), 500+
cities have made regional smart city plans.
 China’s ’ internet+’ movement
 Intense competition between Chinese cities. (Relating
to human resources and investment attractiveness...)
 China's buildings account for 28 % of the country's total
energy use. This is an increase of eight percentage
points in ten years, which is primarily attributable to
the rapid increase in housing construction. Chinese
residential buildings usually have a short lifespan, are
poorly insulated and often have a lack of quality, based
on construction technology and building material, for
cost reasons. There is a huge demand for modern and
sustainable construction materials and methods to reduce the energy consumption of the
buildings and ensure a longer usage. [Advantage Austria, 2016]
Market Participants
 Lead or Spatial Information Technology Corporation - provides big data and operations services
for smart cities.
 eGOVA - a smart cities application and information provider.
 E-hualu - uses technologies including cloud computing, the Internet of Things and big data to
develop smart city infrastructure, public safety, and public health.
 Enjoyor Co., Ltd. - uses cloud computing, Internet of Things, and big data technologies to
develop smart transportation, smart healthcare, and smart cities.
 Taiji - provides software and IT services, including industry solutions and related services, and
can provide consulting and design for information systems.
Market Volume (in €)
Market growth
Small
<5 bil.$
Medium
5-20 bil.$
Large
>20 bil.$
Weak Medium Strong

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Legal Frameworks
 10+ national promoting policies from 2012 covering national smart city trail plan (2012),
national development plan (2014), digital city to smart city plan (2015), smart city assessment
system and standards (2015, 2016), smart traffic development plan (2017), etc.
 500+ cities have integrated ‘smart city’ into government action plans (e.g.: Hong Kong 2030+)
 The legal frameworks have gradually been completed in the past 5 years. The political certainty
and stability will last to the 14th
5-year plan.
 The project opportunities in specific cities will be highly determined by local plans and economic
strengths.
Business Opportunities for European SME
Great demand for advanced technologies/products/solutions from foreign companies.
International activities/fairs/conferences/forums provide stages and opportunities for European
SMEs (e.g. Shanghai International Smart City Exposition, Asia-Pacific Smart Cities Summit and
Forum, and the China Smart City Expo)
Hong Kong: pilot projects to test innovative Smart City technologies [Advantage Austria, 2018]
The "Energizing Kowloon East Office" is to test the use of advanced smart city / IT technologies and
make the experience gained available to the wider public on the basis of the Kowloon-East area
(region around the former Kai Tak airport) ("Proof of Concept Trials") At present, the office is
working on the trial implementation of solutions for
 Smart Waste Bin System
 Kerbside Loading/Unloading Bay Monitoring System
 Real Time Roadworks Information
 Structural Integrity/Detection of Infrastructure
 Sensing Infrastructure
 Water Quality Alert System
More information can be found here: Kowloon East Proof of Concept Trials und Smart City Kowloon
East.
Strategic Partners & Contact Points for market entry
Leading companies with international cooperation experience:
 H3C - leading company provides a full range of Compute, Storage, Networking and Security
under the H3C digital solutions infrastructure and to provide a complete, one-stop digital
platform solutions that include Cloud Computing, Big Data, Big Interconnectivity, Big Security,
Big Surveillance, Edge Computing, AI and Block chain.
 DC Holdings – a listed company that doing ‘Internet Plus Smart City’ business.
Product distributor
 KERNTECH - Distributor of B&R, Advantech in China market.
Consulting firm
 Umore Consulting – a professional consulting firm that provides Softlanding service that
specifically help foreign clean tech companies enter China market.
State-owned Organization that promote cross-border cooperation.
 FECO – The Foreign Economic Cooperation Office (FECO) is an institution affiliated to the
Ministry of Environmental Protection of China.

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Production Storage Distribution Utilization
Digitalisation
& Efficiency
III. Green Energy, Energy Efficiency & Smart Grids
The key area “Green Energy & Smart Grids” is structured into the following value chain elements:
They include for example technologies in the following fields: smart energy solutions, renewable
energy from hydro power, solar, biomass and biofuels, etc.
 Great Demand: China, as one of the main growing
economies, has a strong urge for energy to support the
fast-growing industries. And China’s original energy
structure is mainly based on coal, it is unsustainable and
easy to create other pollutions, thus, China has
dedicated to development green energy for decades.
 Strong Call for Advanced Technologies: Green energy
generation in China has decades of history, in this niche
market, China has formed mature market chain. But for
other parts, such as energy storage, long distance
transmission and smart grid, still have technical
barriers, foreign companies, especially those equipped
with advanced technologies, will have a great potential
in these niche markets.
 Sharp Growth: By 2017, the green energy is 14.3% of total energy, to accomplish the goal of
15% in 2020 and 50% in 2030, China will still experience a sharp increase in the 10-30 years
(national plan). China’s green energy investment in 2017 was record-breaking €114.6 bn, while
the total investment globally was €288.2 bn.
 The market has primarily formed industrial chain, some leading companies has already
occupied certain market share, but due to the technical barriers in energy storage and long-
distance distribution, foreign companies, especially those equipped with advanced technology
in niche market will have a great chance to enter China.
Market Participants
In China energy generation is mainly state owned and the market is not as big as compared to other
sectors. Thus, the following market participants are mainly based in the field of energy storage and
smart grid:
ZTT Group, Distributed Energy Storage
 Energy products manufacturer, including power cable, conductor, Li Battery, energy storage
system, etc.
Narada, Green Energy Storage
Market growth
Small
<5 bil.$
Medium
5-20 bil.$
Large
>20 bil.$
Weak Medium Strong

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 Leading battery manufacturer, high-reliable lead acid batteries, Lithium-ion cells and related
components and subsystems.
Sacred Sun, Energy Storage and Micro-grid
 Manufacturer in batteries and related storage components, pioneer in micro-grids in remoted
areas
NARI Technology, Leading SOE in Smart Grid
 Belong to State Grid Corporation of China, have mature business chain
Chint, Leading POE in Smart Grid
 Parent company is Clint Group, leading POE in energy market, Clint is specialized inclean energy
supply and energy efficiency management solution
Legal Frameworks
Energy Production and Consumption Revolution Strategy (2016-2030), jointly issued by NEA and
NDRC in December 2016, is one of the most important guidance for the green energy/energy
efficiency/smart grid sectors.
It sets the goals of the energy development in next decade: in 2020, 15% non-fossil fuel of all energy,
unit energy efficiency per GDP is 15% less; 2030, 20% non-fossil fuel, 2050, 50% non-fossil fuel, top
tier in energy efficiency and energy sector globally.
To achieve these goals, China will experience sharp increase, the investment increase in 2017 is a
strong proof (Bloomberg): 2017, the total investment in green energy worldwide was €288.2 bn,
increased 3% compared to 2016, meanwhile, China alone, has invested €114.6 bn, especially in
distributed solar energy, 24% more than 2016. There’s no doubt China now has already been the
development engine in green energy.
State-Owned Enterprises (SOEs) are still the main players in China’s green energy market, but there
are more leading Privately-Owned Enterprises (POEs) performing strong in market share growth. It
is a signal that SOEs alone are not enough for the sharp increase, POEs are successively playing a
more and more important roles.
Moreover, different from SOE’s natural benefits in resources, POEs has more technical DNA. The
increase in market share for those POEs also indicates the higher importance in technology,
especially in the niche market with more technical barrier. European SMEs, especially those
equipped with advance technology will have a great chance in China market.
 ZTT Group. It has aimed at distributed energy storage in remote areas, the energy demand
for e-cars in China. The next step will be an all-in-one station for energy storage and output.
 Narada. Battery manufacturer, seeking for more reliable battery technology.
 Dynavolt Tech. Battery manufacturer, seeking for more reliable battery technology.
 Soaring. Leading company in micro-grid, hundreds of projects in these areas
 TBEA. One of the biggest energy transmission components companies in China

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Collection &
Logistics
Waste
treatment &
Sorting
Waste to
material
Waste to
energy
Digitalisation
& Efficiency
IV. Waste Management & Recycling
The key area “Waste Management & Recycling” is structured into the following value chain elements:
They include for example technologies in the following fields: new sorting solutions for future waste,
new solutions for rare earth metal recovery and battery recycling, digital waste management, etc.
 Waste generation in China has been steadily increasing
for years. Despite legal guidelines and laws, municipal
waste generated in 2016 amounted to 203.6 million tons,
6.4% more than in the previous year. China produces
about 56% of the world's solid waste, and as the
population grows, so does the volume of waste.
 Currently, around 85% of the officially counted
household waste can be disposed of. Much of it is
dumped in landfills. The Chinese government's goal is to
increasing thermal utilization of household waste in the
coming years (54%).
 The 13th
Five-Year Plan defines new goals to reduce
waste. It will invest 38.1 Mr. US $ for the treatment of
municipal waste.
 China has been the largest importer of solid waste since the 1980s. So far, about two-thirds of
the world's plastic waste has been imported. Since the beginning of 2018, imports of vandium-
containing slags, household waste, unsorted recovered paper and unsorted old textiles have
been banned. From 2020, the import ban applies to all domestic replaceable waste. [BMWE, 2018]
Market Participants
 Dongjiang Environmental - Largest hazardous waste disposal and mater recovering company in
China.
 Everbright International - A leading player in China's environmental protection industry and the
largest waste-to-energy investor and operator in Asia.
 Hangzhou Jinjiang Group - The Company mainly operates environmental energy, non-ferrous
metal and chemical business, including waste incineration power generation, alumina
production and salt chemical production.
 Shanghai Environmental Protection Co., Ltd. - Sewage sludge treatment plants, municipal
waste collection, waste treatment and incineration plants, flue gas treatment
 Dynagreen Environmental Protection Group - State enterprise: research, investment,
construction and operation of waste incineration plants; Consultancy and services
 Golden State Environment Group - solutions for waste management and environmental
infrastructure. Core technologies are e.g. Sorting plants, incinerators, composting plants etc.
[BMWE, 2018]
Market growth
Small
<5 bil.$
Medium
5-20 bil.$
Large
>20 bil.$
Weak Medium Strong

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Legal Frameworks
To build a circular economy, five ministries (MOFCOM, DRC, MLR, MOHURD, China Coop)
announced in 2015 a joint action plan, the "Construction plan of renewable resources recycling
system 2015-2020", which includes the following targets by 2020:
 Establish national recycling networks for waste streams involving households, industry, public
institutions and consumer markets
 Establishment of local recycling sites for every 1,500 households; construction of 200 regional
recycling and waste separation centers and 2,000 waste recycling facilities
 Recycling of more than 75% of the most important waste streams by a recycling network that
covers more than 85% of the communities and villages
 Financial support for 100 major recycling companies and promotion of domestic and foreign
investment in the field of recycling and utilization of secondary raw materials
[Advantage Austria, 2016]
‘Municipal Waste Sorting Action Plan’ issued by the Ministry of Housing and Urban-Rural
Development: large cities are obliged to implement municipal waste sorting system by 2020.
 opportunity for smart bins, smart sorting systems and techniques.
Import ban for 24 types of solid waste
 Might be a restrictive factor for waste management companies; the feedstock for waste
treatment and disposal project operators decreased by 111 million tons due to the ban.
According to the Bidding Law of the P.R.C., all public construction projects (including plant
procurement) must be advertised on official websites via open bidding. Such tenders can be found:
 on the homepages of the respective City Administration Committee / Bureau, e.g.
http://www.gzcgw.gov.cn (City Administration Committee of Guangzhou Municipality)
 on the Provincial (or Municipal) Bidding Administration website, which is monitored by the
Regional Development and Reform Commission, e.g. http://www.gzggzy.cn (Guangzhou Public
Resources Trading Center).
 on general tender websites, e.g. http://www.bhi.com.cn, http://www.chinabidding.com,
http://www.bidcenter.com.cn
In general, China's cities, municipalities and industrial zones often lack integrated waste
management concepts. As part of the large-scale expansion of waste incineration in China, there is
a need for high-tech and low-pollution incinerators. China is expected to change its energy mix and
become less dependent on coal in the years to come - generating electricity from waste ("waste-to-
energy"). [Advantage Austria, 2016]
Regional environmental management authorities (typically environmental protection bureau of
a province or a city) - integrated waste management concepts for industry zones and regions (e.g.
Electronic industrial park in Guangdong: treatment solutions for electronic waste containing heavy
metals.)
European SMEs can directly find Industrial companies that generate wastes: Baosteel, Global 500
in Fortune steel company in China, which has large amount of solid waste such as slag…
Chinese leading companies in Waste management industry.
Dongjiang Environmental, TECHCENT (another listed company doing W2V business, ALBA’S
strategical partner in China market)

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Raw-Meterials-
Providers
Infrastructure:
Distribution, supply,
collection
Purification &
Treatmend:
Hardware
Assembles /
Manufactures
End-user:
Utilities & Large
Scale Industries
Digitalisation &
Efficiency
V. Resource Management (Water & Air & Soil-Management)
The key area “Resource Management (Water&Air&Soil-Management) “ is structured into the following
value chain elements
They include for example technologies in the following fields: water management and efficiency, air
purification, soil remediation, etc.
Market Environment & Trends - WATER
The Chinese water industry is characterized by water
scarcity. Especially in rural areas, the water supply is
inadequate. The sanitation also still requires structural
renewal.
At the same time, demand for water from industry,
agriculture and the population continues to rise.
To meet these challenges, Chinese government investment
will increase to around US $ 40 billion annually in the
coming years.
 China has market-specific challenges to watch out for.
This includes first and foremost the very low water
price. In the past, network operators were often barely
able to cover their ongoing costs.
 In addition, it should be noted that the municipal
market for water management is largely saturated. In
order to gain a foothold here, it requires good local networked contacts.
[BMWE, 2018]
Market Participants - WATER
Several national and local decision-makers are responsible for the water and sanitation sectors.
Level 1- State Council: Responsible for the implementation of laws and guidelines, coordination of
ministries
Level 2: Ministerial level:
 Ministry of Water Resources: responsible for surface waters
 Ministry of Environmental Protection: responsible for the quality of water resources and
groundwater levels
 Ministry of Land and Resources: responsible for groundwater and groundwater levels
 Ministry of Housing, Urban and Rural Development: Urban Water Supply and Sanitation
 Ministry of Finance: Price regulation for water and wastewater treatment
[BMWE, 2018]
Companies:
 Kaiyuan Group - Specializes in the production of water treatment equipment. Joined with
Westech since 2015.
 Kesheng - A water treatment and environmental recovery technology company.
 Beijing Enterprises Water Group Ltd., - China’s flagship company for water treatment.
Market growth
Small
<5 bil.$
Medium
5-20 bil.$
Large
>20 bil.$
Weak Medium Strong

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 Beijing Originwater Technology Co Ltd. – Investment, financing, research and development in
the field of membrane technology
 Interchina Water Treatment Co., Ltd. - Urban water supply, sewage treatment
Legal Frameworks - WATER
In 2017/8, China set the Water Ten Law into effect, which serves as the backbone for the Water Ten
Plan, a set of policies to make certain domestic industries comply to stricter water pollution and
usage standards.
A key component here is the action plan "Water Pollution Prevention & Control Act" which has
been in force since 01.01.2018 and intends to reduce pollutant emissions into the environment
through tougher penalties and consistent monitoring.
The implementation of the Action Plan will also be a priority of the 13th
Five-Year Plan (2016-
2020), with the inclusion of rural areas and villages becoming more important than before. By 2020,
95% of wastewater is to be treated in large and medium-sized cities, and 85% in county towns.
[BMWE, 2018]
Business Opportunities for European SME - WATER
Global Water Intelligence predicts that private sector demand for water technologies will double
in the next 20 years. Here, GWI sees significant market potential, especially for manufacturers of
innovative waste water or sewage sludge treatment processes.
Special sales opportunities are available for:
 Manufacturer of technology-intensive, high quality filters, valves or pumps
 Developers of innovative processes for the treatment of industrial wastewater
 Manufacturer of monitoring and control systems in the water sector
 Manufacturer of technologies for drying, treatment and disposal or recycling of sewage sludge
[BMWE, 2018]
International conferences provide a stage for European SMEs to enter the Chinese market, for
example the annual Qingdao International Water Conference.
Strategic Partners & Contact Points for market entry - WATER
It is highly advisable to have a Chinese cooperation partner in public procurement procedures at
local and provincial level, as they usually have a good network and many contacts with local
decision-makers.
Foreign Economic Cooperation Office (FECO), which is a member of the Ministry of Environmental
Protection is responsible for the management of financial resources of international organizations
and development funds. The FECO also has the International Platform for Environmental
Technology (IPET), a platform for exchange between Chinese and foreign companies and institutions
in the field of environmental technologies.
Further information and some public tenders in the field of environmental technologies can be
found on the pages:
 http://en.mepfeco.org.cn/Biddings/
 http://www.chinabidding.com
 http://www.bidcenter.com.cn
 http://www.bhi.com.cn
 http://www.gzggzy.cn (Guangzhou Public Re-sources Trading Center)

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Market Environment & Trends – AIR and SOIL
 With the rise in public awareness of air quality on
health, the air purifier industry is booming in China,
with upwards of 20 billion RMB in sales in 2017
 In addition to an emphasis by the government on water
and air pollution control within China, soil remediation
is also gaining national attention.
 The market for industrial emission reduction
technologies will grow very strongly in the coming
years. At present, there is still a shortage of suppliers
of advanced "clean" technologies and production
technology in the Chinese market, which is why foreign
companies currently enjoy a certain competitive
advantage. However, it is expected that Chinese
environmental technology companies will seek to
catch up with the market leaders over the next five to
seven years through intensive research and capital.
Market Participants – AIR and SOIL
AIR
 Top Resource Conservation Engineering Co., Ltd. - Research, design, engineering and
construction services; Management of combined heat and power plants; flue gas cleaning.
 Beijing SDL Technology Co., Ltd. - Environmental monitoring systems; Process analysis,
measuring instruments and monitoring systems for air and water quality.
 Jiangsu Kelin Environmental Equipment Co., Ltd. - Flue gas filters, soundproofing and insulation
products, bag and bag filters; as well as other filter systems for heavy industry.
 Xiamen Savings Environmental Co., Ltd – dust filter
 Chengdu Raise Environmental Technology Co., Ltd. - Flue gas cleaning, filters, desulphurisation
plants, denitrification plants for the energy, chemical and petroleum industries, metallurgy and
relevant industries.
 Hebei Jingao Dust Removal Equipment Co., Ltd. - Dust treatment and dedusting systems
Well-known household air purifiers in China include Philips (Holland), Blueair, Electrolux (both
Sweden), Midea, Gree, Yadu (all China), Honeywell, Agcen (both USA) and Sharp and Panasonic
(both Japan).
SOIL
 Harbin Insititute of Technology Environmental Technology Co., Ltd. - Various environmental
technologies, technical advice, soil pollution monitoring, water protection and energy
monitoring.
 Shenwu Environmental Technology Co., Ltd. - Power plant technologies, energy saving
technologies and soil pollution treatment.
 BCEG Environmental Remediation Co., Ltd. - offers soil, farmland, mine, heavy metal, and
underground water soil remediation solutions and is one of the leaders in its industry.
Market growth
Small
<5 bil.$
Medium
5-20 bil.$
Large
>20 bil.$
Weak Medium Strong

Date : 30/05/2018 Page 13 / 14
Legal Frameworks – AIR and SOIL
The Chinese government has already enacted strict policies on domestic air pollution, which has
seen dramatic decreases in the past few years. Air quality standards nationwide continue to be
tightened year after year.
In 2016, the State Council of China issued a Soil Pollution Prevention and Control Action Plan as
part of its fight against severe soil pollution that exists nationwide. It aims to make 90% of polluted
farmland safe for human use by 2020, and 95% by 2030, as part of the 13th
Five Year Plan.
Business Opportunities for European SME – AIR and SOIL
Energy production and consumption account for nearly 80% of the greenhouse gases emitted by
China. Opportunities in the market environment for the environmental technology that will
contribute to the reduction of air pollution are: products and technologies contributing to the
reduction of pollutant emissions (e.g. flue gas cleaning plants) and, those that save energy a priori
or use it efficiently.
The sectors currently investing in emissions control include power generation (coal plants), iron
and steel, cement, building materials, chemical and petrochemicals, paper mills, fermentation
plants, PVC factories, non-ferrous smelting plants, light industry, textile industry and fertilizer
industry.
In some industries, there are also concrete government "recommendations" for using modern
environmental technologies. For flue gas desulphurisation in the steel industry, the government
prefers e.g. the lime washing process, the use of magnesium oxide or the circulating fluidized bed
firing. [Advantage Austria, 2016]
China needs inexpensive soil remediation technologies to manage the vast swathes of contaminated
farmland that spread across the nation, totalling to about 20% of China's 124 million hectares of
farmland.
Strategic Partners & Contact Points for market entry – AIR and SOIL
To promote the environment-friendly industry, China set up research and advisory centers at
various levels and for various industries, known as Cleaner Production Centers. At a national level,
the China National Cleaner Production Center (CNCPC) was established back in 1994. It is under
the authority of the State Environment Protection Administration and deals with application-
oriented research into technologies for sustainable, ecological production and circular economy.
Environmental auditors are also trained by CNCPC. Finally, CNCPC has been working on projects for
a long time with the United Nations Environment Program (UNEP) as well as UNIDO (United Nations
Industrial Development Organization) and World Bank.
At provincial level, Provincial Cleaner Production Centers are affiliated to the respective
Department of Environmental Protection. In addition, there are other such industry-level centers
for the chemical, metallurgical, petrochemical, engineering and other industries.
[Advantage Austria, 2016]
European SMEs can directly find Industrial companies with air pollution problems.
 Yangmei Chemical, China’s largest C2X company, in great need for VOCs treatment solutions.
A Chinese leading companies in Specific business fields is BGE, offers pollution prevention and soil
remediation solutions.
Cross-border service company
 Umore consulting

Date : 30/05/2018 Page 14 / 14
VI. “Market entry: Success factors and challenges for European Cleantech SME”
Success factors and challenges for European Cleantech SME in the Chinese market
 Entering the Chinese market is subject to high risk due to corruption. China has a corruption
Index of 40 out of 100 according to Transparency International. Recently, Chinese President Xi
Jinping introduced an anti-corruption campaign to create a more stable economy (Pei, Johnson, &
Brown, 2017).
 Technology plagiarism. Cooperate with large companies that have positive cross-border
cooperation experiences.
 Chinese governments prefer local environmental companies. Especially in fields that relate to
national secrecy information. (e.g. soil pollutant data.)
 Dramatic change in political trends: Environment industry in mainly driven by political forces
in China, rapid and dramatic change in political trends may severely influence the develop
environment of environmental companies. It is an obvious disadvantage for foreign SMEs that
are not familiar with government’s steps. It is recommended to watch the technical standards
and laws a hold contact to the competent authorities.
 Although cultural differences occur often in international business, the Chinese culture is
completely different compared to the Austrian:
o Add a Chinese touch to the company: Properly marketing the own company to Chinese
requires Chinese touches serving as an eye-catcher. E.g.: a Chinese brand name, website
and promotional material should be professionally translated into Chinese, consider
cultural meaning of colours and numbers, etc.
o Gift-giving: giving gifts is still an important part in the Chinese society, as giving a small
present, especially throughout business negotiations and if the business person is
invited to someone’s house, is always positive. Other important differences are that
gifts and also business cards should be given and received with both hands and the
gift is never opened in front of the giver, as this is considered as greedy. (US-China Business
Solutions, 2006)
o Flexibility and punctuality
o Establishing Guanxi is one of the most important aspects when doing business in China.
This expression refers to Chinese business relationships (Luo, 2007, p. 95).
o Personal contact at trade is are a very important tool to convince potential customers
with products or services or simply to become more renowned in the market. It is
important to make several trips to China in person.
 Social Media is common practice in communication and marketing: Identify important events
and evaluate the suitability of the different media channels for business purposes. However,
the Western social media platforms are banned in China. Therefore, China has its own social
networks which use is essential for foreign companies (Thai, 2017).
 Goals, vision and mission statement are most important in all fields of communication!
 Market size and marked conditions are unmanageable complex. Therefore, you need above-
average performances.

Business intelligence on the chinese greentech market

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