Water Companies Find Emerging Customers In China

Policymakers in Nevada are looking to China as a potential big spender in the state’s thriving water tech market.

Governor Brian Sandoval and a small delegation from Nevada “returned Oct. 25 from a weeklong trade mission to China that was focused on getting Nevada-born pollution solutions into China, and coaxing Chinese investment dollars into Nevada. Sandoval signed agreements with two Chinese governors that clear the way for Nevada economic development officials to return and drill down on specific deals in January and March,” the Associated Press recently reported.

The governor’s chief strategy officer Dale Erquiaga explained the state’s role in the process. “The state’s job is to serve as a relationship broker,” he said, per the report. “The governor opened the doors.”

Nevada is a water technology hub, according to the U.S. EPA. Major institutions in the state have committed to working on water innovation through a partnership program. Participants include the Nevada System of Higher Education; the Department of Employment, Training, and Rehabilitation; the Nevada Governor's Office of Economic Development; The Southern Nevada Water Authority; and IBM.

China faces two chief water problems: pollution and scarcity. Reuters reported that "China's wetlands have shrunk nearly 9 percent since 2003, aggravating water scarcity in a country where food production, energy output and industrial activity are already under pressure from water shortages."

Water problems in China are so severe that they have dramatic consequences on public health. "The government in 2013 acknowledged the existence of rural 'cancer villages' — with high rates of cancer — that cluster along areas with wells contaminated by industry and agriculture. Pollution is also exacerbating chronic water shortages in the arid northern part of the country," The Wall Street Journal reported.

Experts say the country must invest heavily in water in the coming years. "Water has emerged as a major issue in China. Its scarcity endangers economic growth and social stability, and China has set aside $660 billion for projects to boost supply this decade," Reuters reported.

For more stories about the opportunities presented by drought, visit Water Online’s Water Scarcity Solutions Center.