Counting on China's Burgeoning Green Technology Marketplace

I was interviewed recently on CNBC’s Closing Bell show on the investment opportunities Americans have with Chinese businesses, and the show’s host Maria Bartiromo mentioned the bad air and water quality that troubled her during her visit to China.  Bartiromo is certainly not alone in her observations, but what most people do not realize is the burgeoning green technology industry has arisen in China to improve the quality of the air and the water. 

With a country population of 1.3 billion people, China is the world’s largest consumer of water.  As China’s global stature grows, the Chinese government has started to impose much stricter environmental and water quality standards and water treatment in China is becoming a priority issue for industries, businesses and municipalities. The Chinese government’s economic stimulus package includes over $36 billion for environmental projects such as waste water treatment and renewable energy facilities.

The benefits of this government-backed stimulus is that a bumper crop of Chinese companies have emerged to address the country’s significant environmental hazards accrued from their multi-decade role as the “world’s largest factory” which was contaminated from sewage and other industrial waste products. As the president and founder of an international financial consulting company that works closely with Chinese companies, I have been following with interest the new green technology market leaders in China. 

The money and influence of the Chinese government to clean up China’s environmental act has even created the formation of a unique Chinese green sector roll-up with One Holdings Corp., (OTCBB: ONEZ);  an investment company that owns a majority equity interest in core operating assets in bioengineering utilizing green processes located in the Asia Pacific region.  In only a short period of time as a public company, ONEZ has already acquired three Chinese companies with more on the horizon. The Company is also unique in that it is being run by experienced US executives.

Rino International provides environmental protection equipment for the iron and steel industry in China as well as design, manufacture, install and service wastewater treatment, flue gas desulfurization equipment, and high temperature anti-oxidation systems that reduce industrial pollution and improve energy utilization. Rino International Corp. (NASDAQ:RINO), which started trading on the OTC Bulletin Board exchanges and moved to the Nasdaq this summer, has seen astronomical gains in its stock price.

However, while everyone should be happy about the country’s galvanizing efforts to improve the environment which will result in a healthier and happier Chinese population, the Chinese green sector should be invested in cautiously.  As the Chinese green sector is a burgeoning market in its infancy, there are challenges to face including a fragmented market for environmental goods and services and a regulatory infrastructure that’s still in its infancy.

The Chinese people work as a united whole when faced with issues such as their environmental woes, and I do believe that they are committed to rectify the environmental toll that industrial development has taken from them. China’s environmental cleanup drive is creating a new category of forward-thinking green sector companies that will ultimately create a greener and healthier China. 

 

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Comments

[Ramirez1]

I think China has a great infrastructure and their technology is one of the best in world.