Page 176 - 2018 White Paper on the Business Environment in China
P. 176
8 White Paper on the Business Environment in China

Building Supplies to scrub the air of carbon dioxide and release oxygen into
the air. The city should be even more effective as it ages
Building products that meet the new energy efficiency since a single adult tree can absorb 48 pounds of CO2 and
standards in new, unique, or economically competitive release 260 pounds of oxygen per year (Nace). Some of
ways have the greatest potential market in China. Looking the amazing projected statistics concerning this project
at the sector as a whole, U.S. exporters took the lead include:
over international competitors in 2017, edging ahead
of Japan, which long had occupied the leading import 10,000 tons of CO2 absorption per year
market share position. Japan now trails the U.S. slightly 57 tons of pollutant absorption per year
at 11 percent market share, followed by Germany (9.7 900 tons of oxygen produced per year
percent), Russia (7.5 percent), and Canada (5.7 percent). 30,000 inhabitants
A view of each subsector gives a more informed sense of 40,000 trees within the city
the competitive environment (China Construction). 1 million plants and over 100 species within the city (Nace).

Certain products stand out as potential investment The Italian design firm Stefano Boeri Archetetti also
opportunities. There is a strong demand for high-quality announced another project earlier in the year in Nanjing.
heating, ventilation, and air conditioning (HVAC) products The company will build two skyscrapers called Nanjing
in China, the world’s largest market, with exporters from Green Tower that will hold a total of 1,100 trees and 2,500
Germany, Japan, the United States, and Korea claiming cascading shrubberies on rooftops and balconies. Boeri
60 percent of the import market. The United States is describes his “vertical forest” concept as an architectural
the third largest source of subsector imports, with a 12 equivalent to a skin graft, a “targeted intervention
percent market share. Lighting represents an enormous designed to bring new life to a small corner of China’s
area of opportunity for U.S. exporters. Government polluted urban sprawl” (Phillips). The project is similar
authorities throughout China are working to encourage to another two-tower project Boeri designed in Milan.
energy efficient retrofits of buildings, in which lighting is Another green tower in Lausanne, Switzerland is slated
widely viewed as a “low hanging fruit” investment option to open by early 2018. Boeri’s projects are certainly in
to increase energy performance. U.S. lighting exporters line with the current Five Year Plan and other national
have room to grow their share of the China market, ambitions. The Chinese government released new policy
currently at just 6.5 percent. Wood is also an important goals for energy-efficient and green buildings in May
market. American exporters currently claim 13.3 percent 2017 requiring urban civil buildings to meet additional
of the import market and are the second largest source energy-saving requirements. The government expects
of imports after Russia (16 percent). While Chinese energy efficiency to increase by 20 percent compared
importers have shown strong interest in importing logs to that in 2015. By 2020, urban green buildings should
or least-processed wood and undertaking value-added account for 50 percent of all newly constructed buildings
production in China, U.S. exporters have tremendous (Construction Industry).
opportunities in higher value-added wood product sales.
There is ample room for growth in U.S. plumbing exports China’s construction market, the largest in the
to China, which, at 8 percent of the market, are the fifth world, builds as many as two billion square meters
largest source of imports. There are solid opportunities per year and will account for almost half of all the new
for growth in U.S. window and door exports to China, construction globally in the coming decade. Buildings
which currently rank sixth in import market share at 5.7 accounted for only 28 percent of the country’s energy
percent (China Construction). consumption in 2011. Things changed. The country’s
economic growth and rising population could increase
Green Building this number to as much as 40 percent over the next 15
years. Green building technologies and solutions are
The Chinese government broke ground in 2016 on a key part of China’s sustainability and environmental
an ambitious green plan to create a “forest city.” The city protection goals. China’s 13th Five Year Plan for Building
will snuggle along the Liujiang River in the mountainous Energy Efficiency and Green Building Development’s
region of Guangxi near the city of Liuzhou and could aggressive plan to meet the country’s green building
be completed by 2020. The urban development will be construction and renovation specifies pilot programs
covered with plants and soar panels. The city is designed for constructing schools, community hospitals and

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