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With the sustained fast-growing of China's economy, the continuous increase on population and the ever expansion of urbanization, the worsening water shortage, especially in the northern part of China, has become the bottle-neck for China's social and economical development. Per capita water resources are no more than 2,400 cubic meters in this country, equivalent to only one- fourth of the world's average. It is planned that US $12 billion will be invested in the project of diverting water from the south to the north.

In the meantime, the serious water pollution is endangering the people's living environment. Surveys indicate that close to 38% sections of China's seven major rivers are polluted, seriously or less. The country wasted 41.5 billion tons of water in 2000, 47 per cent of which was caused by industrial production.

China's current situation with regards to the treatment of urban sewage is far behind the times. Currently, about 20 percent of urban sewage can be treated, compared with the 85 percent in some developed countries. To date, the country's urban wastewater treatment plants number nearly 400, which means that about 30 per cent of sewage can be treated. By the year 2010, when the country's urbanization rate is projected to have reached 40 per cent, China plans to raise the amount of waste water it can treat to at least 50 per cent in urban areas and 70 per cent in its key cities. To achieve the goal, a total of US $483 billion will be invested in the establishment of new sewage treatment plants, equipment purchase and technological update by the year 2005.

Most of the water works and sewage treatment plants constructed between 1989 and 1997 in China used foreign funds and imported equipment. This will continue. China particularly welcomes the participation of foreign businesses in the development of dephosphorization and denitrification technology and of technologies for the treatment of water with a high concentration of organic waste.

In addition to closing down backward and polluting firms, the country intends to highlight the research into and development of advanced technology - especially in the bioengineering sphere - to treat water pollution caused by dye, farm chemicals and pharmaceutical industries.

With China's official entry into WTO, more business opportunities will be available for you on investment, sales or cooperation in the industry.