Industry Applications
Municipal Water Affairs
The water industry refers to the industrial chain composed of raw water, water supply, water conservation, drainage, sewage treatment, and water resource recycling. The water industry is one of the most important basic urban service industries in China and in all countries and regions around the world, as daily production and life cannot be separated from urban water supply.
Since the reform and opening up, with the acceleration of urbanization in China, the importance of the water industry has become increasingly prominent, and it has become an important pillar of social progress and economic development. A situation has basically formed where government regulation is continuously strengthened, policies and regulations are constantly improved, the investment and operation entities in the water market are diversified, the technical level of water engineering has improved, the distribution of water supply networks is increasingly scientific and reasonable, the water supply capacity has significantly increased, and the degree of marketization and industrialization of the water industry has deepened, leading to a good situation where water investment and operating enterprises are developing and growing. For a long time, China's water industry has been characterized by strong local monopolies, insufficient scale, a single property rights structure, and low industry concentration. The market-oriented reform of the water industry still faces issues such as unclear reform goals, lack of unified planning, and supporting policy support. At the same time, for a long time, the operation, management, and construction of urban water enterprises in China have been mainly undertaken by the government or its subordinate enterprises, with water supply and sewage services often adopting government pricing and financial subsidies, and a reasonable water price formation mechanism is still being established.
The main forms of competition in China's water industry are represented by the competition between international water giants in China and the competition among a few domestic water enterprises operating in regional markets across different areas.
International water groups hold a certain market share in large water projects in China due to their strong capital, advanced technology, and management experience. From the perspective of comprehensive competitive strength, French Veolia Water Group, Suez, and Singapore's Singapure Technologies Group have strong competitive power, investing in China through direct investment, BOT, cooperative operations, holding, or acquisitions, and have already occupied a large market share.
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