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Impact of the U.S.-China Tariff War on China's Water Market
- U.S. export primarily Chinese company shake-up
- Europe and Middle East market will be Chinese company’s export direction
- Domestic products substitution of international products accelerate
- U.S. manufacturer may consider to set up manufacturing line outside U.S. if to keep China market
China’s brine concentration market(BC), from challenges to maturity, poised for global impact
- Due to information gaps, the overseas market is unaware of China’s technological advancements, but Chinese technology has the potential to benefit the global brine concentration market
- In addition to zero liquid discharge in wastewater, the benefits to the global market are more significant in specialized fields such as lithium recovery, utilization of concentrated brine from seawater, and water concentration in the oil and gas industry
A significant trend in China's 2024 environmental M&A market was the accelerated consolidation, primarily driven by state-owned capital
Solid waste sector is a hotspot for M&A in China’s environmental industry
- More water sector acquisitions are on niche market segments
- The main acquirers are state-owned capital
- Although evaluation at low point, many companies are choosing not do M&A due to risk concern
The maturity of China’s environmental industry market can possible benefit international company supply chains
- The quality of Chinese environmental products are improved after the years of practical application
- Beside pricing advantage, the R&D capability of Chinese players can support global company on challenge problems
China surface water quality has greatly improved by government management, pollution control and technology improvement
The improvement mainly by 3 key aspects:
- Government management
- Pollution control
- Technology improvement
It's time to rethink China's reverse osmosis (RO) market and players
- Chinese RO manufacturers with strong competitiveness in Res&Com and drinking water, while developing fast in industrial brackish water application
- Capacity utilization rate average 60%, will continual impact previous international players share in China market
- China RO local players are looking for outside China market especially Southeast Asia, Middle East, European market
China's Water Industry Achieves Steady Growth in 2023
- In 2023, the water industry in China demonstrated remarkable stability compared to other environmental.related businesses.
- lt boasted the largest number of profitable companies, with half of them experiencing growth.
- However, approximately 40% of the growing companies had a growth rate 0-20%
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