Page 210 - 2023 White Paper on the Business Environment in China
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3 White Paper on the Business Environment in China
more coal from other countries, especially Russia, implementation since the initial announcement.
at a time when Western countries were shunning Between September 2021 and April 2022, 15
Moscow over its invasion of Ukraine. Customs overseas coal power projects that were in the pre-
statistics showed that China brought in 7.42 financial closure and pre-construction stages were
million tonnes of coal from Russia in August 2022, shelved or cancelled. These were projects that had
up 14 percent from the same period in 2021. It was nonetheless received Chinese financial backing or
also the highest monthly figure since comparable EPC (engineering, procurement and construction)
statistics began in 2017. The power shortages have support. Question marks still hang over projects
proved that coal is “indispensable,” said analysts where financial closure has already occurred but
from Guotai Jun’an Securities, a Shanghai-based construction has not yet started, and “captive”
brokerage firm, in a report earlier this week. “The power plants being built specifically to power
slash in hydroelectricty has made [the country] industrial zones. In these cases, compensation
more reliant on coal,” they said, expecting more for breaches of contract could be due if a Chinese
coal power stations to be built if the extreme party unilaterally withdraws, making cancellation
weather persists in the future (He). more complicated (Chen and Shen).
In September 2021, China’s president, Xi Jinping, Works Cited
told the UN General Assembly via video link that
China would increase support for green and low- AFP. “China Speeding up Approvals for New Coal
carbon energy in developing countries, and not Plants: Greenpeace.” Phys.org, Phys.org, 20 July
build any new coal-fired power projects overseas. 2022, https://phys.org/news/2022-07-china-coal-
The move reflected a wider backing away from coal greenpeace.html.
among traditional and emerging aid donors. Two
of Asia’s main exporters of coal power projects, GT. “Power Shortage for Industrial Production
Korea and Japan, had made similar statements in in China's Sichuan Eases.” Global Times,
June 2021. The month after Xi’s announcement, 28 Aug. 2022, https://www.globaltimes.cn/
OECD members said they would no longer offer page/202208/1274067.shtml.
export credit support for coal power plants
unless plans to abate emissions were in place. AFP. “China Reconnects Nuclear Reactor
Its decision is having and will have a profound after Shutdown Due to Damage.” Tech Xplore -
effect, both at home and in expanding the low- Technology and Engineering News, Tech Xplore, 17
carbon development and energy transition paths Aug. 2022, https://techxplore.com/news/2022-08-
of developing nations. Since the announcement, china-reconnects-nuclear-reactor-shutdown.html.
China’s government bodies, financial institutions
and power plant builders have been working at Buljan, Adrijana. “Record Wind Turbine Orders
the policy, finance and project level to increase in Q2 2022, China Driving the Increase.” Offshore
support to renewable energy projects in its Wind, 13 Sept. 2022, https://www.offshorewind.
overseas energy investments. At the policy level, biz/2022/09/13/record-wind-turbine-orders-in-q2-
in March 2022 the National Development and 2022-china-driving-the-increase/.
Reform Commission and three other government
bodies published a joint document on promoting CD. “China Begins to Lead the Way in Renewable
green development in Belt and Road nations. It Energy.” Eastday, 9 Sept. 2022, https://english.
called for “a full stop to new coal power projects eastday.com/Business/auto/u1ai8744206.html.
overseas, and cautious progress on those already
under construction,” as well as the green and CGTN. “China Keeps Enlarging Nuclear Power
low-carbon development of overseas coal power Generation Capacity in 2022.” CGTN Technology ,
projects which have already been built, which 25 June 2022, https://news.cgtn.com/news/2022-
in practice means retrofitting plants to improve 06-25/China-keeps-enlarging-nuclear-power-
efficiency and reduce pollution. These were the first generation-capacity-in-2022--1b9uz0DnM3e/
concrete instructions from Chinese officialdom index.html.
on how to handle projects at different stages of
210
more coal from other countries, especially Russia, implementation since the initial announcement.
at a time when Western countries were shunning Between September 2021 and April 2022, 15
Moscow over its invasion of Ukraine. Customs overseas coal power projects that were in the pre-
statistics showed that China brought in 7.42 financial closure and pre-construction stages were
million tonnes of coal from Russia in August 2022, shelved or cancelled. These were projects that had
up 14 percent from the same period in 2021. It was nonetheless received Chinese financial backing or
also the highest monthly figure since comparable EPC (engineering, procurement and construction)
statistics began in 2017. The power shortages have support. Question marks still hang over projects
proved that coal is “indispensable,” said analysts where financial closure has already occurred but
from Guotai Jun’an Securities, a Shanghai-based construction has not yet started, and “captive”
brokerage firm, in a report earlier this week. “The power plants being built specifically to power
slash in hydroelectricty has made [the country] industrial zones. In these cases, compensation
more reliant on coal,” they said, expecting more for breaches of contract could be due if a Chinese
coal power stations to be built if the extreme party unilaterally withdraws, making cancellation
weather persists in the future (He). more complicated (Chen and Shen).
In September 2021, China’s president, Xi Jinping, Works Cited
told the UN General Assembly via video link that
China would increase support for green and low- AFP. “China Speeding up Approvals for New Coal
carbon energy in developing countries, and not Plants: Greenpeace.” Phys.org, Phys.org, 20 July
build any new coal-fired power projects overseas. 2022, https://phys.org/news/2022-07-china-coal-
The move reflected a wider backing away from coal greenpeace.html.
among traditional and emerging aid donors. Two
of Asia’s main exporters of coal power projects, GT. “Power Shortage for Industrial Production
Korea and Japan, had made similar statements in in China's Sichuan Eases.” Global Times,
June 2021. The month after Xi’s announcement, 28 Aug. 2022, https://www.globaltimes.cn/
OECD members said they would no longer offer page/202208/1274067.shtml.
export credit support for coal power plants
unless plans to abate emissions were in place. AFP. “China Reconnects Nuclear Reactor
Its decision is having and will have a profound after Shutdown Due to Damage.” Tech Xplore -
effect, both at home and in expanding the low- Technology and Engineering News, Tech Xplore, 17
carbon development and energy transition paths Aug. 2022, https://techxplore.com/news/2022-08-
of developing nations. Since the announcement, china-reconnects-nuclear-reactor-shutdown.html.
China’s government bodies, financial institutions
and power plant builders have been working at Buljan, Adrijana. “Record Wind Turbine Orders
the policy, finance and project level to increase in Q2 2022, China Driving the Increase.” Offshore
support to renewable energy projects in its Wind, 13 Sept. 2022, https://www.offshorewind.
overseas energy investments. At the policy level, biz/2022/09/13/record-wind-turbine-orders-in-q2-
in March 2022 the National Development and 2022-china-driving-the-increase/.
Reform Commission and three other government
bodies published a joint document on promoting CD. “China Begins to Lead the Way in Renewable
green development in Belt and Road nations. It Energy.” Eastday, 9 Sept. 2022, https://english.
called for “a full stop to new coal power projects eastday.com/Business/auto/u1ai8744206.html.
overseas, and cautious progress on those already
under construction,” as well as the green and CGTN. “China Keeps Enlarging Nuclear Power
low-carbon development of overseas coal power Generation Capacity in 2022.” CGTN Technology ,
projects which have already been built, which 25 June 2022, https://news.cgtn.com/news/2022-
in practice means retrofitting plants to improve 06-25/China-keeps-enlarging-nuclear-power-
efficiency and reduce pollution. These were the first generation-capacity-in-2022--1b9uz0DnM3e/
concrete instructions from Chinese officialdom index.html.
on how to handle projects at different stages of
210
