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Ansprechpartner/Kontakt in Deutschland 

Frank Haugwitz - Junior Länderrepräsentant - Centre for Environmentally Sound Technology Transfer (CESTT) Beijing / VR China - Zentrum für den Transfer umweltschonender Technologien, Luisental 29 D / App. 7239 , 28359 Bremen , Tel/Tax: +49 (0) 421 - 24 357 61, E-Mail: 

China 2000 und 2001


Berlin: Berlinwasser International in Xian

Umweltkonferenz in Beijing im Dezember 2000
Das Ereignis des Jahres 2000 nach dem Besuch Zhu Rongjis in Berlin war die vom 12. bis 13. Dezember  2000 durchgeführte de Umweltkonferenz, deren Ergebnisse wir hier auf der webpage von dokumentieren.

Nach China mitreisen
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Pazifik Wochen 2001 in Berlin
Asien-Pazifik-Forum Indonesien

Umweltschutz wird Tagespolitik in China
Asien-Pazifik-Forum Indonesien

Shanghai Konferenz Mai 2001

Ergebnisse Umweltkonfernz in Beijing

Environmentally Sound Technology *in China

N e w s l e t t e r

Centre for Environmentally Sound Technology Transfer

ECO Investment Forum for EST for the Taihu Basin

The Administrative Centre for China's Agenda 21 (ACCA21), through its operating arm the Centre for Environmentally Sound Technology Transfer (CESTT) and the local govemments of the Taihu Basin are proud to be organising the Eco Investment Forum for Environmentally Sound Technology for the Taihu Basin from 26-28 May 1999 in Huzhou City, Zhejiang Province. The Forum, and the promotion program leading up to the Forum, is supported by the Chinese Ministry of Foreign Trade and Economic Co-operation (MOFTEC), the Ministry of Science and Technology (MOST), the Jiangsu and Zhejiang Provincial Govemments, and the Shanghai Municipal Government. lt also receives the technical assistance of the United Nations Industrial Development Organisation (UNIDO). 

Table of Contents 

  • ECO Investment Forum for EST for the Taihu Basin                               

  • Programme for the ECO Investment Forum ECO Investment Promotion in Europe        

  • The Impact of Credit Reform on China's SME's    

  • The Second National Workshop on Acid Rain and Emissions Reduction                       

  • Training Seminar for Vietnamese Officials  

  • Some Useful Web Sites on China             


This forum is the result a joint effort by CESTT and UNIDO over the past 10 months. After the conclusion of the first phase, which focused capacity building for eco investment & technology promotion, a team made up of three foreign consultants and four national consultants was chosen to work in the basin for one month. The team selected 138 enviromnentally sound, economically beneficial and technical feasible investment projects. Afterwards, a 36 member delegation was organised to attend the Terra Tec - International Trade Fair for Environmental Technologies and Energy from 2-5 March, 1999 in Leipzig, Germany. Most of the delegation members were from major cities in Taihu basin, chosen to promote the projects located in their regions. The delegation also visited the UNIDO Headquarters Office in Vienna and participated in two business senünars organised by the UNIDO Investment Promotion Office in Italy. All of these activities have proved to be important in the success of the upcoming Forum.


The Forum aims primarily at initiating direct contacts between Chinese enterprises and investment project sponsors and potential foreign partners to discuss selected industrial, tourist and infrastructure projects as well as at bringing together local firms with foreign enterprises seeking business opportunities in China. The Forum will centre on 138 UNIDO screened eco investment projects as well as a number of other local projects from around the Taihu Basin. UNIDO and CESTT have prepared profiles on each of the screened projects and summaries of these project profiles are available online.


Attendees will participate in panel discussions on local investment policies and opportunities in Shanghai, Huzhou, Jiaxing, Wujin, Yixing, and Xishan cities as well as have opportunities to personally visit project sites.


Participants will also have an opportunity to give their own industrial promotion presentations and set up promotion booths at the forum. In conjunction with the site visits, one of the main features of the Forum will be individual business discussions and appointments organised between Chinese investors and local firms and potential foreign partners and entrepreneurs to discuss


specific projects. Foreign companies are also welcome to present their technologies and proposals for co‑operation to Chinese business representatives attending the Forum. On day two of the forum there will also be seminars held on the possibilities for foreign participation in the development of eco-tourism and the eco-industry in China.


ECO Investment Promotion in Europe


One pillar of CESTT's strategy to effeetively promote ECO Investment for EST in the Taihu Basin is to raise the interest of potential foreign partners in their home countries. With this major objective in mind CESTT, together with the China Science and Technology Exchange Centre, arranged an ECO Investment Promotion Mission to Germany, Austria and Italy from 1 to 14 March, 1999. Interested companies and officials from the Taihu Basin were invited to join the mission and finally a 36 member delegation was set up under the leadership of Dr. Guo Risheng, deputy director general of The Administrative Centre for China's Agenda 21 (ACCA2 1).


The first mission in Europe was this year's Terra Tee, one of Germany's most important environmental trade shows, taking place from 2‑5 March in Leipzig. Together with the Leipziger Messe GmbH at the Delegation Office of German Industry and Commerce in Beijing, a comprehensive programme of presentations and activities was designed to make best use of the time invested at Terra Tee.


Both ACCA21 and CESTT were present with informative stands on their tasks and projeets in the International Marketplace at Terra Tee, a separate exhibition area for the general public concentrating on international environmental and energy problems and requirements. Nearby, right opposite the marketplace, companies and representatives from the provinces of Jiangsu, Zhejiang and Anhui and of an environmental company from Beijing had their individual stands. During this time, from 2 to 4 March, the delegation was mainly occupied in establishing contacts with interested


German companies which visited the stands or had been directly approached by delegation members.


The highlight of the delegation's debut at Terra Tee was without a doubt the "China Environment and Energy Day" on 5 March 1999, which was attended by close to 80 persons. This event had been specially conceived to inform interested German environmental companies on the ECO investment opportunities in the Taihu Basin and to give them an idea about the general climate for environmental business in China. Speeches were held on China's policy and regulations on environmental protection and on EST promotion followed by presentations from local officials and representatives from the Taihu Basin conceming their projects. German participants also talked about the interests and aetivities of their particular companies and institutions and in the aftemoon there was room for business meetings between potential German and Chinese partners.


The delegation left Leipzig knowing that it was too early to arrive at any final conclusions on the outcome of its presence at Terra Tee. Besides the many contacts that were established at Terra Tee, above all participation in this trade show was an invaluable experience for all of the delegation members.


After Terra Tee, the delegation moved on to Vienna. The group leader and other seven representatives first paid a visit to the UNIDO Headquarters Office and exchanged information about the progress of eco­investment project promotion. UNIDO officials reiterated their support for this pilot project for ECO investment. Afterwards, a seminar was held with the Association of Australian Machinery Manufacturers.

Close to half of the delegation members panicipated. The seminar started with a video presentation about the machinery manufacturing industry in Austria, and followed with more presentations by representative Australian companies and potential financing institutions. Mr. Shi Han, on behalf of the Centre for Environmentally Sound Technology Transfer, gave an introduction about the background and contents of the Eco‑investment Promotion Programme for the Taihu Basin. The vice‑mayor of Huzhou city, Mr. Tan Yueming, gave an introduction on the investment environment in the Taihu region.


The last stop of this mission was Milan, Italy where a similar seminar was held by the Investment Promotion Office of UNIDO in Italy. Representatives of Italian companies and finaneing were institutions were invited to give presentations. Both of these seminars proved to be a good opportunity to make their respective cities better known, to establish contacts with foreign companies and to effectively promote their projects.


Because the Eco-investment Promotion Tour was objective-oriented and the delegation members came well prepared for their missions, good results have already been achieved by the mission. For instance, the Jiangsu East China Computer Room Group was invited by the Weiss Company for an on‑site visit in Stugart. Hong Kong Jishi Building Materials Group expressed their willingness to look for sales agents for Jiangsu East China Computer Room Group. Wujin Hydraulie Hoist Plant agreed to co-operate with EPA Power Plant Faeilities Company to develop silt clearing machine for hydraulie power stations and the ESI International Environmental Protection Service Company showed


great interest in waste disposal projects in Wujin city, Zhejiang Hongbo Group established contacts with German Heurst Company and planned to have a formal meeting in April. LIST Waste Water Treatment Company invited the vice mayor and a company manager of Jiaxing to visit their projects and expressed their interest for real co‑operation.


These activities were also a learning experience for the delegation members. Although some of the members had worked for investment promotion in their cities, they learned from this experience how to better communicate with foreign investors from different cultural backgrounds. lt was also a valuable experience for the mission organisers. More follow-up activities will take place to guarantee the success of the Forum scheduled from 26 to 28 of May in the Taihu Basin. We are expecting many interested foreign investors to participate in this event.


The Impact of Credit Reform on China's SME's


Experience from both China and other countries show that SMEs perform an essential role in economic development. Their healthy development is critical in promoting economic growth, inereasing employment ratios, reducing the risks of financial crisis and keeping vigor in the national economy. According to statistics from 1996 there were a total of 506,445 industrial enterprises with independent accounting systems in China. Medium and small‑sized enterprises accounted for 16,780 and 482,518 respectively, a combined 98.6% of the total. Small and medium‑sized enterprises also contributed 56% of industrial value added and absorbed 70% of the employees for all industrial enterprises with independent accounting systems in China during 1996.


Confronted with serious external competition, Chinese SMEs are simultaneously faced with the need to outperform the competition, enlarge the share of their products and services on the market and bring themselves to higher levels of development. Scholars generally call this transition Second Development. An effective approach to achieving these targets is to select and adopt environmentally sound technology (EST) to improve efficiency in the use of energy and materials, upgrade technology and bring out new products. At present, lack of sufficient capital is one of the prevailing obstacles to SME's Second Development. Apart from private fundraising, SMEs mainly borrow loans from Chinese commercial banks. Loans targeting SMEs from Chinese commercial bariks are characterised by a large quantity of high risk and small sum loans. Chinese SMEs have comparatively less access to business loans due to the following obstacles:

  • Poor ability to supervise SME's in‑house business activities by the lending institutions;

  • High asset‑Iiability ratio;

  • Scarcity of policies and regulations focused on promoting the development of SMEs in current national macro economic policies;

  • Unreasonableness of current loan standards in which the retum period of lending loans is the fundamental criteria; and

  • Difficulty in enforcing guarantees made by SMEs on bad loans.

The State Council and the Peoples Bank of China (PBC) have issued a series of financial policies focusing on the reform of commercial banks' lending business since the end of 1997. Some of these are very important to Chinese SMEs and include, for example:

A clear statement of support for the development of SMEs. The PBC has for the first time required all types of commercial banks to set up small business credit departments, and city commercial banks and eity and town cooperatives will devote a major portion of credit to SMEs of all kinds of ownership. In addition, commercial banks should cooperate with responsible departments to support the establishment of collateral ageneies working on behalf of SMEs. All types of commereial banks should increase the number and sums of lending loans given out and provide guidance to SMEs to improve their managernent and operations, upgrade technology, increase the quality of their products and prevent environmental pollution;

Beginning in the second half of 1998 commercial banks began using a risk management systern for evaluating loans. This new systern is used to classify löans into one of five categories, normal, needing oversight, second class, suspect and bad. This is quite different and much more manageable than Chinese banks traditional loan classification system;

Canceling quota control for state‑owned commercial bank loans. Now, under the guidance of the State's credit policies, all kinds of commercial banks are able to independently lend working eapital loans and fixed asset loans on the basis of their owned capital.

These policies will have the following impacts on SMEs' borrowing activities:

Lending loans for SMEs by commercial banks will increase at the macro level. This will ensure that all commercial banks have a definite amount of loans available for SMEs. For example, in July 1998 the Mingsheng Bank lent 500 nüllion yuan to 100 SMEs and the Agriculture Bank of China (ABC) has decided to offer 25 billion yuan to TVEs in year 1998‑,

The relationship between banks and enterprises will change. In the past, commercial banks offered loans strictly according to a credit plan worked out by the govemment that was easily influenced by local govemments. In this case banks operated more like an extension of a governmental department. The newly issued evaluation systern urges commercial banks to prioritise quality and econornic profitability in their lending business. Commercial banks will have to put much more attention on the financial situation of SMEs through such measures as a timely analysis of their balance sheet, cash flow tables and income staternent, and fürthermore will if necessary directly intervene in their management and operation. This development will bring the relationship between the two closer than ever before in the past. Overall, the econonlic profitability of lending loans is the most essential factor in deciding whether or not to offer a loan. Also important, investments by SMEs are required to meet national industrial and environmental standards to ensure the safety of loans throughout the ensuing stages of development. This lesson was driven home in 1996 when a number of enterprises falling under the "15 Small" polluting category were closed down by the State. The Agricultural Bank of China, which was heavily involved in these industries, lost a great deal on loans made to this sector; and the difficulty of guaranteeing loans for SMEs will be alleviated. A new mechanism for risk guarantee funds will be established and brought into practiee. The operating method for this kind of fund is predicted to be sirriilar to the Shanghai model in which the risk guarantee fund is made up of financial revenue collected from all levels of local govemment. With this guarantee as a basis, commereial banks can offer special loans to those SMEs that have high technology, good potential market growth and meet the requirements of national and local industrial and environmental policies but are unable to provide adequate loan guarantees on their own. Investment projects, which are highly polluting and low in efficiency for energy and materials use are less likely to enjoy the support of these funds.


When looking to commercial banks for financial support in pursuing opportunities for continued development technology selection and adoption by SMEs is a decisive factor in their success or failure in obtaining a loan. EST has a number of economic and environmental benefits that cover almost all aspects of SMEs' operation, production and management. In addition, many provenly effective ESTs are recognized and accepted by financial institutions. For this reasons it is predieted that SMEs which move first in adopting environmentally sound technology will enjoy priority status in receiving loans from commercial banks, assuring them greater opportunities for future development.


The Second National Workshop on Acid Rain

and Emissions Reduetion


The Second National Workshop on Acid Rain and Emissions Reduction was held in Beijing from 19-20b March 1999, jointly sponsored by the ADB, UNEP Environmental Assessment Programme for Asia and the  Pacific, and ACCA21. Undertaken by CESTT, this workshop raised topics concerning: the application and  modification of the RAINS-ASIA model, applied research of the model in China, trans-boundary conveyance of acid deposits, and policies and lechnologies for the control and reduction of acid rain and carbon dioxide enüssions. More than 30 experts specializing in the field of acid rain and carbon dioxide attended the workshop. Also present were Guo Risheng, deputy director general of ACCA21, and Dr. Ouano, senior environmental specialist at ADB. At the workshop, Mr. Shi Han, director of CESTT briefed the participants on the progress of the Acid Rain and Emissions Reduction in Asia" Phase 11 project, which received technical assistance from the ADB. Other major speeches ineluded: Major Activities and Achievements of the ADB Acid Rain Project, given by Dr. Sunil Malla from the UNEP Environmental Assessment Programme for Asia and the Pacific Case Study of the RAINS ASIA Model in China, given by Dr. Flu Yifen from the Institute of Atmospheric Physics under the Chinese Academy of Science Influence of the RAINS ASIA Model Applied in Eleetric Power Planning and Suggestions, given by Liu Simei, general engineer of the Environmental Protection Institute of Electric Power in Nanjing Countermeasures for Controlling China's Atmospheric Pollution, given by Dr. Xu Xuchang from the State Laboratory of Clean Coal Combustion under Qinghua University Applied Research of the RAINS ASIA Model in Guizhou Province, given by Prof. Zhao Dianwu

Environmentally Sound Technology in China is the newsletter of the Centre for Environmentally Sound Technology Transfer (CESTT), located in Beijing, China. CESIT's mission is to promote the transfer and adoption of environmentally sound technology (EST) by forming a bridge between policy makers, technology suppliers, technology developers and Chinese industry, in particular small and medium-sized enterprises (SMEs). CESTT serves to:  provide EST-related inforrnation to both Chinese and international elients; introduce appropriate foreign environmental technologies into China; present the needs of Chinese SMEs to the international community; and facilitate the commercialisation of Chinese environmental technologies.


This bimonthly publication aims to disseminate information related to the promotion of EST transfer and its adoption. If you would like to join our mailing list and thus receive this newsletter and other important publications, please fill out the form below and fax/mail it to the address given. If you have questions about CESTT or EST in general, or would like to subnüt articles for the next edition of the newsletter, please feel free to contact us via phone, fax, or email.


Centre for Environmentally Sound Technology Transfer

109 Wanquanhe Road

Haidian District

Beijing, 100089

P. R. China


Phone: +86-10-6262-6057, 6256-8803

Fax: +86-10-6256-8628, 6258-8127



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