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Sep 26, 2011

Red China Goes Green: Chinese Government to Support Environmental-Friendly Projects

During the present Five-Year Plan (Twelfth Five-Year Plan: 2011-2015), the Chinese Government has vowed to invest RMB 2 trillion (around USD 300 billion) into the “green economy.”

The amount lends us to believe that foreign investors will also profit from assisting the Chinese government and businesses in more efficiently and cleanly utilizing energy.

Most of the major players, already, have a foothold in China, but the smaller players have plenty of room to maneuver.

Good news for the Chinese people and foreign companies, Vice Minister of National Development and Reform, Xie Zenhua was quoted by the Chinese media extensively that China will focus on projects that will drastically reduce the carbon footprint of China. When a high-level minister makes these statements, often the promise becomes a reality.

As we all know, China is an incredibly polluted nation, however, progress is evident.  Between 2006 and 2010 (Eleventh Five-Year Plan), units of energy per unit of GDP decreased by over 19%, while Carbon dioxide, in China, was cut by 1.5 million tons according to Chinese government statistics.

I have no clue of the accuracy of these statistics, but China has considerably cleaner air than the roaring early 2000s.

The reason for the concentration on cleaning up the environment is the growing middle and upper class that are demanding a cleaner environment.
This has little to do with the international image of China as noted in one of the best books on China: <a href="http://www.amazon.com/Out-Maos-Shadow-Struggle-China/dp/1416537066/ref=sr_1_6?s=books&ie=UTF8&qid=1317097090&sr=1-6">Out of Mao's Shadow: The Struggle for the Soul of a New China.
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30 years earlier these same people were demanding jobs and they got jobs. 20 years earlier these same people were demanding luxury housing and they got luxury housing.

This demand may be more difficult, but I trust that the Chinese government has placed this issue as a top priority and top priorities are typically well managed by Red China - so yes - Red China is going Green.