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5 White Paper on the Business Environment in China
report that “China will spend an estimated US$1.54 trillion tributed approximately 7.8 percent of the national installed
on clean energy projects in the next 15 years,” and that it capacity in 2008, up from one percent in 1949.20
expects merger and acquisition activity in the eld to show
continuing growth12 In 2010, the PRC owned the world’s largest installed hy-
dropower capacity (213 gigawatts), the majority of which is
Development of nuclear power is expected to proceed located in southern and western provinces.12
but is unlikely to outstrip other sources in the clean energy
mix. Whereas in 2009 a State Nuclear Power Technology e May 12, 2008 earthquake in Sichuan, however, high-
Corp (CNPTC) analyst told China Daily that nuclear power lighted concerns about the stability of hydroelectric infra-
generation then accounted for less than 2 percent of the structure. Minister of Water Resources Chen Lei announced
nation’s overall capacity13, a reported government investment two days following the disaster that some 391 dams were be-
of 600 billion yuan over 10 years14 may help to increase lieved to be badly damaged—but even before the earthquake
nuclear generation’s role in satiating China’s increasing energy raised doubts about the structural integrity of the more than
demands. 87,000 dams in China, Deputy Minister of Water Resources
Jiao Yong went on record saying that “roughly 37,000 dams
By January 2011, there were 15 nuclear power reactors across the country are in a dangerous state.”21
across four sites in the PRC, and 26 additional reactors under
construction;15 although historically nuclear sites have been built Despite these concerns, plans exist to expand installed hy-
in coastal regions, new plants are also planned for inland areas.16 dropower capacity by an additional 140 million kilowatts by
2015 and 450 million kilowatts by 2030.22
According to Li Junfeng, Deputy Director-General of the
NDRC’s Energy Research Institute, “ e move to further de- Work on these plans has already begun; Dezan Shira reports
velop nuclear power is integral for China to achieve its goals that “Between the second half of 2010 and the rst quarter
in and emission control”17 of 2011, 10 new major hydropower stations were approved,
with 50 gigawatts of total installed capacity and investments of
“Building more nuclear power stations is essential to China’s more than RMB200 billion,” and that likely areas for foreign
endeavor to cope with energy shortage and pollution,” agreed investment include hydropower equipment manufacture, op-
deputy director of the Science and Technology Committee erational support services and technology upgrades.12
of the China National Nuclear Corporation (CNNC) Ye
Qizhen: “China’s installed capacity of nuclear power is As of late 2013, “hydropower capacity [was] targeted
expected to reach 70 million kW by 2020, 200 million kW to grow about 6 percent a year to reach 290 gigawatts by
by 2030 and 400 million kW by 2050, [… which means that] 2015,”11
nuclear power will account for 7 percent of China’s overall
power capacity in 2020, 15 percent in 2030 and 22 percent Solar power joins hydroelectric in being a “green” source of
in 2050.”18 e target for generation set in the 12th Five-Year power generation, and there has been emphasis on developing
Plan is to reach a capacity of 40 million kW.16 solar power with similar enthusiasm. A China Daily report
in December 2009 trumpeted the “o cial statistics” showing
Externalities may play a long-lasting role in the that China consumes more hydroelectric- and solar-generated
development of the sector. “In the aftermath of the 2011 electricity than any other nation, although the report did
Fukushima nuclear crisis in Japan, Beijing cut its 2020 nuclear not provide a reference to the statistics themselves and does
power capacity target to 58 gigawatt (GW) from 80-90 GW,” not discuss per-capita consumption.20 A Xinhua article from
reports Reuters.19 two months prior reported that “more than 6,000 tonnes
of polycrystalline silicon (a key material in producing solar
Problematically, “aggressive expansion of nuclear power it power) and 2 million kw of solar photovoltaic cells” were
is running into a major stumbling block—a breakdown of produced in 2008.23
trust, post-Fukushima, in o cial assurances of public safety.”
In July of 2013, for example, “a $6 billion uranium processing e Wall Street Journal cites an estimate that the PRC will
plant in the southern province of Guangdong was canceled account for 13 percent of global demand for solar generation
[after] about a thousand people took to the streets demanding equipment by 2015, up from a current 7 percent in 2011.24
the project was scrapped over public health and environmen-
tal fears.”19 A goal of 20 gigawatts of installed solar capacity by 2020
had been published in mid-2010;25 meanwhile, the 2015
“Industry insiders blamed the cancellation of the project target is 10 gigawatts.12 Reuters reports that by the end of 2010
on poor communication and a lack of public education. ey there existed 900 megawatts of capacity in the country.26
say if things do not improve more protests could spring up
elsewhere, threatening those plans to build new reactors.”19 To encourage the construction of more solar power plants,
the PRC government initiated a program called the “Golden
Hydropower, a strong contributor to China’s power pro- Sun” subsidy, which was announced in 2009 and includes a
duction, especially in central and western provinces, was at- 50 percent subsidy of all grid-connected sola investments and
70 percent of o -grid photovoltaic investments.12 e nation
114
report that “China will spend an estimated US$1.54 trillion tributed approximately 7.8 percent of the national installed
on clean energy projects in the next 15 years,” and that it capacity in 2008, up from one percent in 1949.20
expects merger and acquisition activity in the eld to show
continuing growth12 In 2010, the PRC owned the world’s largest installed hy-
dropower capacity (213 gigawatts), the majority of which is
Development of nuclear power is expected to proceed located in southern and western provinces.12
but is unlikely to outstrip other sources in the clean energy
mix. Whereas in 2009 a State Nuclear Power Technology e May 12, 2008 earthquake in Sichuan, however, high-
Corp (CNPTC) analyst told China Daily that nuclear power lighted concerns about the stability of hydroelectric infra-
generation then accounted for less than 2 percent of the structure. Minister of Water Resources Chen Lei announced
nation’s overall capacity13, a reported government investment two days following the disaster that some 391 dams were be-
of 600 billion yuan over 10 years14 may help to increase lieved to be badly damaged—but even before the earthquake
nuclear generation’s role in satiating China’s increasing energy raised doubts about the structural integrity of the more than
demands. 87,000 dams in China, Deputy Minister of Water Resources
Jiao Yong went on record saying that “roughly 37,000 dams
By January 2011, there were 15 nuclear power reactors across the country are in a dangerous state.”21
across four sites in the PRC, and 26 additional reactors under
construction;15 although historically nuclear sites have been built Despite these concerns, plans exist to expand installed hy-
in coastal regions, new plants are also planned for inland areas.16 dropower capacity by an additional 140 million kilowatts by
2015 and 450 million kilowatts by 2030.22
According to Li Junfeng, Deputy Director-General of the
NDRC’s Energy Research Institute, “ e move to further de- Work on these plans has already begun; Dezan Shira reports
velop nuclear power is integral for China to achieve its goals that “Between the second half of 2010 and the rst quarter
in and emission control”17 of 2011, 10 new major hydropower stations were approved,
with 50 gigawatts of total installed capacity and investments of
“Building more nuclear power stations is essential to China’s more than RMB200 billion,” and that likely areas for foreign
endeavor to cope with energy shortage and pollution,” agreed investment include hydropower equipment manufacture, op-
deputy director of the Science and Technology Committee erational support services and technology upgrades.12
of the China National Nuclear Corporation (CNNC) Ye
Qizhen: “China’s installed capacity of nuclear power is As of late 2013, “hydropower capacity [was] targeted
expected to reach 70 million kW by 2020, 200 million kW to grow about 6 percent a year to reach 290 gigawatts by
by 2030 and 400 million kW by 2050, [… which means that] 2015,”11
nuclear power will account for 7 percent of China’s overall
power capacity in 2020, 15 percent in 2030 and 22 percent Solar power joins hydroelectric in being a “green” source of
in 2050.”18 e target for generation set in the 12th Five-Year power generation, and there has been emphasis on developing
Plan is to reach a capacity of 40 million kW.16 solar power with similar enthusiasm. A China Daily report
in December 2009 trumpeted the “o cial statistics” showing
Externalities may play a long-lasting role in the that China consumes more hydroelectric- and solar-generated
development of the sector. “In the aftermath of the 2011 electricity than any other nation, although the report did
Fukushima nuclear crisis in Japan, Beijing cut its 2020 nuclear not provide a reference to the statistics themselves and does
power capacity target to 58 gigawatt (GW) from 80-90 GW,” not discuss per-capita consumption.20 A Xinhua article from
reports Reuters.19 two months prior reported that “more than 6,000 tonnes
of polycrystalline silicon (a key material in producing solar
Problematically, “aggressive expansion of nuclear power it power) and 2 million kw of solar photovoltaic cells” were
is running into a major stumbling block—a breakdown of produced in 2008.23
trust, post-Fukushima, in o cial assurances of public safety.”
In July of 2013, for example, “a $6 billion uranium processing e Wall Street Journal cites an estimate that the PRC will
plant in the southern province of Guangdong was canceled account for 13 percent of global demand for solar generation
[after] about a thousand people took to the streets demanding equipment by 2015, up from a current 7 percent in 2011.24
the project was scrapped over public health and environmen-
tal fears.”19 A goal of 20 gigawatts of installed solar capacity by 2020
had been published in mid-2010;25 meanwhile, the 2015
“Industry insiders blamed the cancellation of the project target is 10 gigawatts.12 Reuters reports that by the end of 2010
on poor communication and a lack of public education. ey there existed 900 megawatts of capacity in the country.26
say if things do not improve more protests could spring up
elsewhere, threatening those plans to build new reactors.”19 To encourage the construction of more solar power plants,
the PRC government initiated a program called the “Golden
Hydropower, a strong contributor to China’s power pro- Sun” subsidy, which was announced in 2009 and includes a
duction, especially in central and western provinces, was at- 50 percent subsidy of all grid-connected sola investments and
70 percent of o -grid photovoltaic investments.12 e nation
114
