On 14 May, the US government announced huge increases in tariff rates on a range of Chinese exports, most of which are forms of “green” or low-carbon technologies. The measures, which will come into effect on 1 August, include a 100% tariff on the value of electric vehicles, 25% on lithium-ion batteries and 50% on solar cells. This means importers of Chinese goods from the affected categories, which also include medical products, steel and aluminium, and ship cranes, will have to pay the specified percentages to the US government as tax.

Besides representing a new area of tension between the US and China, the tariff hikes have implications for global energy transitions, climate diplomacy, Latin American manufacturing and trade relations, and the very nature of technological progress in the 21st century.

Dialogue Earth spoke to experts from Europe, China and Latin America on their assessment of these issues and more.

Belinda Schäpe
Independent expert and advisor on Chinese climate policy and EU-China relations

The recent US tariffs on green technologies mark the next stage in a trade war with China that could slow down an already delayed energy transition in the US. A race to the top in production would be welcome, but current US policies might not have the anticipated effect. Green technologies in the US will likely become more expensive due to the new tariffs, despite the large subsidies of the Inflation Reduction Act, hampering global efforts to tackle climate change. The EU should not compromise on its climate targets; instead, it should find its own way of handling China’s dominance in green technologies.

The EU needs to carefully balance its objectives of achieving resilient supply chains and climate resilience. Hastily cutting China out of green technology supply chains could jeopardise the EU’s climate objectives. This requires a pragmatic look at the threat from Chinese green technologies: while dependence on China for some goods may create economic and strategic risks, it may not for others. To ensure a smooth energy transition, some reliance on China may be unavoidable in the short- and medium-term, given its dominance in international supply chains. Diversifying these supply chains will require global partnerships, particularly with countries in the Global South, backed by financial firepower and innovation, rather than new tariffs.

With tensions between the US and China escalating, EU-China relations play a pivotal role in maintaining continuity in climate efforts and diplomatic dialogue. A looming tit-for-tat between China and the US on green technologies risks undermining global climate cooperation. Under a second Trump administration, the US might abandon its climate commitments – and with that, one of its few active working groups with China. If US-China climate engagement falls apart, the onus will fall on the EU to work more closely with China towards advancing global climate efforts and to hold China accountable for its climate commitments. The EU should stand ready to maintain its climate leadership position, while carefully navigating trade tensions.

Yao Zhe
Global policy advisor for Greenpeace East Asia

With elections approaching, President Biden’s decision to escalate the trade disputes on Chinese green products is a risky bet. Going tough on China may win over some voters as an immediate political gain, but he could lose China’s trust for climate cooperation. China is expected to take countermeasures in response to the new tariffs, but US-China climate dialogues are set to continue. However, if green trade disputes continue to intensify, it could prevent any substantial coordinated climate effort from the two countries.

US-China climate engagement is now headed by new leads. John Podesta, now America’s top climate diplomat, is also in charge of the implementation of the Inflation Reduction Act. His dual hats will inevitably draw trade and climate talks closer together, and that will be a tough test for the resilience of bilateral climate engagement.

Climate was the special bond stabilising relations between the two countries during difficult times. But recent moves in the US, including pressuring China with “overcapacity” claims and hiking tariffs on Chinese EVs and solar cells, are sending conflicting signals.

Competition may well be the baseline of US-China relations for a long time to come. But that doesn’t mean they have to compete on every front. On climate, there are still good reasons to cooperate, even in green industries.

Chinese companies are exploring opportunities to set up joint ventures and manufacturing centres in overseas markets, including the US. This will help create local jobs and economic growth. If Chinese and American businesses have the desire to work together, politics should not get in the way.

David Tyfield
Professor of sustainable transitions and political economy, Lancaster University

The new US tariffs on Chinese electric vehicles (EVs) show that there are increasingly powerful voices in the US, who get that there is much more at stake with the EV than a minor upgrade of a long-established technology.

We are only at the beginning of the socio-technical evolution of the EV. They are increasingly “supercomputers on wheels”, in an age where everything is digitalised. As a result, EVs are not only central to the transformation of mobility and geopolitical competition in associated key industries of the 21st century, they are also the key technology that will shape forms of urban life, visions of the (“good”) future, and thus, global order and power.

Given the fundamental mismatch between the global worldviews of the current and rising superpowers, it is little surprise that we are witnessing a dynamic of escalating rivalry and progressive “strategic decoupling” regarding the EV, what it will become and how it, in turn, will shape the future world.

The determined presence of the US in a genuine “global EV race” is welcome – not necessarily for the quantitative pace of EV roll-out, nor because American innovation is somehow “better”, but because it at least secures a platform for meaningful competition regarding the qualitative moulding of future EVs. It also ensures that the trajectories of this crucial technology are not ceded by default to the demands of the Chinese Communist Party.

The protectionism involved, though, is a strategy beset by the risk of being self-defeating. Yet this is now unavoidable. What is clearly not on the table any longer is the “best case”, win-win and lowest-risk strategy: that of US-China collaboration.

So, how this latest move affects the global sustainable mobility transition depends on complicated detail as it develops over the medium-term. As the US and China offer increasingly distinct and directly competing visions of the EV, the rest of the world (whose markets both will need) could play one against the other, yielding a positive global outcome. But the opposite outcome may also arise, as a worsening geopolitical split spills over, slowing EV adoption through cycles of distrust that negatively affect this technology.

In short, the tariffs have announced a new era in which intensified global competition could accelerate or slow EV adoption but will definitely make it more turbulent.

Jorge Heine
Research professor at the Pardee School of Global Studies and interim director of the Frederick S. Pardee Center for the Study of the Longer-Range Future at Boston University

This should be a wake-up call for all countries in the region, as it may be the opening salvo of a major escalation in the US-China trade war. Candidate Trump has announced that, as president, he would impose a 10% tariff on all goods imported into the United States and a 60% tariff on all Chinese goods.

Since the 90s, a number of Latin American countries including Chile, Colombia, Peru and Uruguay have bet on free trade and on having access both to the US and Chinese markets (whose economies comprise 40% of the world’s GDP) to increase their exports and grow. This bet has stood them in good stead.

The message coming out of Washington now is that the era of globalisation and open markets is over. Protectionism now rules the roost. For a region endowed with so many of the key commodities for the transition to a green economy, including copper and lithium, the targeting not just of electric cars, but also of batteries and other green renewable energy products like solar panels, is especially worrisome for Latin America.

Leveraging and adding value to these key commodities for the transition to a green economy is, for many Latin American countries, the best option to boost growth, after yet another “lost decade”. Latin American countries are keen to work with both the United States and China to make this happen by triangulating the relationship – much as the region did at the height of the commodities boom.

The message coming out of Washington, however, is that this is a no-go. The US is now strictly prioritising its own internal market, with climate change and the region’s green transition considered mere collateral damage.

Enrique Dussel
Coordinator of the Centre for China-Mexico Studies at Mexico’s National Autonomous University

In the past few years, we have been experiencing a conflict between the US and China. Many are speaking of “near-shoring”, “onshoring” and “offshoring”. I would add “security-shoring” to the conversation, which places US national security above trade and has a direct impact on third countries.

Recently, the expectation in the US is that third countries must use the same regulations against China. It is the “invest, align, compete” strategy that the US has taken against China. The “align” aspect affects third countries, because the US is looking for third partners to join against China; the expectation is that Mexico aligns itself with security-shoring strategy in all areas.

In the electoral field, both Biden and Trump agree on this, and the game will be who is tougher against China.

This article was originally published on Dialogue Earth with the title “Roundtable: Implications of US tariffs on China’s ‘green’ products” and has been reproduced under the Creative Commons BY NC ND licence.

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Approaching the China market can be overwhelming, especially for small businesses. It is necessary to weigh the costs and benefits of trading in a new country and a new business context. HR, customs challenges, different business cultures, and other considerations can be a lot to work through.

However, Kevin Shakespeare, director of stakeholder engagement at The Institute of Export & International Trade, says that many of the areas that give businesses reason to pause when considering trade with China – such as inspection certificates – will soon also apply to trade with the EU. It is something that all exporting businesses will have to get used to and prepare for, so China will not necessarily be significantly more complex than any other export market.

Many of the areas that give businesses reason to pause when considering trade with China – such as inspection certificates – will soon also apply to trade with the EU

One of the most common concerns among businesses interested in China is that of intellectual property (IP) protection. St. John Moore, Chairman of the British Chamber of Commerce in China, says that for many years, IP has featured among the top three areas of concern for UK companies responding to the Chamber’s surveys. However, last year, it dropped out of the top ten, indicating that businesses operating in China are becoming less concerned with IP issues as the Chinese government implements more regulation to confront counterfeiting. “As long as businesses take a thoughtful approach to IP, it should not hold them back,” he says. The same can be said for many of the market access challenges facing businesses in China.

Companies looking to enter or expand within the China market will need to explore the different regulations, registration processes, and rights protection strategies that apply to their business, and learn about China’s unique commercial environment, including different payment methods and market leaders. E-commerce and social media both drive consumer spending and if companies are looking to produce sales in China, they must be willing to invest in understanding and building a strategy around China’s key e-commerce and social media platforms. Even if on-the-ground development in China is still a few years away, businesses should familiarise themselves with the commercial environment and look at making initial enquiries into areas such as IP now, in order to help protect their businesses later on.

Specific areas of opportunity for British businesses include green energy, legal services, education, consultancy, finance, and cross-border e-commerce. Kevin Liu, head of China and head of energy Asia Pacific for Scottish Development International, says that there are opportunities for the UK and China to draw on one another’s strengths in specific areas such as offshore wind technology, and that “China is looking towards the UK to resolve these questions.”

There has also been increasing inbound investment into the UK from China in recent years. Damon Peng, regional director, East and West China of Invest Northern Ireland, says there has been strong inbound investment in the technology and education sectors in Northern Ireland in recent years. There has also been “a dramatic increase in food and drink exports to first- and second-tier Chinese cities too.”

Kevin Liu also says that there is great potential for boosting trade between China and Scotland, as Scotland currently accounts for less than one percent of UK-China trade.

Chinese students in the UK continue to be an important factor for international investment and student visas have been a key indicator of UK-China diplomatic relations in recent years.

The British Chamber of Commerce in China’s Position Paper 2020, highlights the need for a robust, long-term strategy for UK trade with China, and suggested that China must be a priority for a Free Trade Agreement (FTA). UK products and services are well regarded by Chinese consumers, however, amid ongoing global tensions and following Brexit, there is a need for a comprehensive approach to supporting ongoing trade between China and the UK.

In addition to supporting the need for an FTA, Guy Dru Drury, the chief representative for China, North East and South East Asia at the Confederation of British Industry, says that university education is the soft power association with this exchange and a “core asset” to UK-China relations. Chinese students in the UK continue to be an important factor for international investment and student visas have been a key indicator of UK-China diplomatic relations in recent years.

The British Chamber of Commerce in China’s Position Paper 2020 also notes that British businesses are “cautiously optimistic,” when it comes to relations in a post-Covid-19 world. Whilst current events have posed temporary challenges to conducting trade with China, the paper highlights recent positive steps regarding trade, regulation, and market access for UK businesses in China. As companies around the world work on overcoming challenges posed by the global pandemic, it is important to engage with China, to read past the headlines, and act on the wealth of experience of British businesses already operating in China.

Click here to watch more about this topic

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In April, China released its draft energy law that aims to regulate, control and reform the energy sector.

“The aim of this law is to reform a sector that is very traditional but is going through a lot of change,” explains Jessica Henry, First secretary for energy policy for the FCO, based in the Embassy in Beijing. “That involves working with some of the large, state-owned enterprises, some of which are keen to stick to their traditional models and are quite reluctant to change. So it needs a gentle and nuanced approach to moving forward that reform effort.

“The lead drafting party on this law is the Ministry of Justice, which shows how seriously they are taking it and how they are convening and managing the different ministries and the input from lots of different interest groups. The Ministry of Justice should be more objective in setting the legal basis for this law which would include ministries not only in charge of energy, but also in charge of everything from the environment to forestry, to the oceans.”

Adds Henry: “It’s very complicated to provide a legal basis for the world’s largest energy consumer and producer.” It is, after all, “quite a big job.”

Indeed it is. Henry, who is responsible for government-to-government relations on energy policy, explains that the bill has been 15 years in the making, with the first draft being published around the same time the National Energy Administration (NEA) was created as a separate energy ministry.

“At that time, it was very short and was more of a declaration than a comprehensive energy law, but has had many revisions since then. In 2017 there was a major revision that took into account technological and market developments over the period. It included context from the Paris 2015 Climate Conference, but also reflections on Xi Jinping’s speech on the four major energy revolutions from 2014, so you could see it become broader and reflect some of the wider political and economic features of the time.”

This latest revision continues to reflect current themes, including energy security and low carbon development as key parts of China’s energy strategy.

One of the reasons it has taken such a long time is because it is trying to keep up with fast-paced technological developments. The cost of renewables has fallen dramatically, and China has become a world leader in renewables and low carbon transport in recent years, so it’s a challenge to update laws as fast as technological developments.

This version is the latest in a draft law that has been open for comments. As of now, there has been no specific timeline laid out for when the draft will actually be turned into law.

As of now, there has been no specific timeline for when the draft will actually be turned into law.

The drafting process is done by officials from various different ministries who work with research institutes and academic experts. Having drafted the law, there was a period until May 9^th during which people could comment on this law either directly, informally or through trade and lobbying organisations.

What does the law include?

The law focuses heavily on plans to open up, reform and liberalise the energy sector in China. Foreign investment will be welcomed into the sector, which has traditionally been dominated by state-owned enterprises. Allowing foreign investment into the market will not only allow foreign companies to compete, but will also force Chinese companies to become more competitive.

“It is welcome that the draft law is to reform the energy sector and lower investment barriers,” says Dr Zhi Shengke, director of strategy and development at energy company Wood Plc. “British companies such as BP, Shell and Wood can take advantage of China’s energy market reform and introduce various technologies and engineering solutions to the sector. Meanwhile, this draft law delivers a clear message that the Chinese energy sector won’t just focus on energy security and energy transition, but also invest more on decarbonisation and digital solution. The government is sending a clear signal to domestic companies that they need to be more competitive in terms of technology and digital.”

“There is a welcome focus on low carbon development,” adds Henry. “There are new measures to monitor emissions and limit environmental damage and to promote low carbon technologies, including renewables. There is also a welcome focus on continuing market reform making markets more open and more competitive,” she says.

“However I think there are still a few areas that need more detail. At the moment the draft is still quite high-level and we’d like to see a bit more detail on how markets will be regulated, and the enforcement mechanisms for those,” she says.

But overall the law, “is about creating a more open, transparent, competitive market so that (both Chinese and international) private companies are able to compete with state-owned enterprises on more of a fair basis. State owned enterprises are going to have to make improvements if they are going to keep competing with private companies.”

What does it mean for British business and intergovernmental collaboration?

“This could be the start of the transformation,” says Dr Zhi. “A rapid energy transition is happening due to the impact of COVID-19, environmental pressure and the development of digital and decarbonisation technology. China is positioning to be a dynamic energy market, which is attractive to foreign investment.

“Over the last decade, many international oil companies, chemical companies and engineering companies have invested in the China market. Lower trading barriers means that cost benefits from using the latest technologies and supply chain are less constrained.  Hence, more low carbon technologies could be brought into the Chinese energy industry.

“In China, the overall energy demand is still growing but the energy production predominantly relies on coal for power generation, as it’s low cost and plentiful. It is delightful to notice that the energy law is to spearhead and develop decarbonisation technology and digital technology to reduce the greenhouse gas emissions while meeting developing nation’s growing needs for energy. I look forward to the transformation led by Chinese SOEs,” says Zhi.

Matt Ashworth, commercial counsellor for energy and infrastructure at the Department for International Trade (DIT) explains that new marketisation opportunities will arise for competitive businesses who are able to bring in international expertise and find collaborative projects.

“We have a lot of strong relationships in the energy sector between UK and China from large multinationals to SMEs,” he says. Companies like BP and Shell have been taking advantage of some of the opening up and the relaxation in terms of foreign investment into retail oil and gas markets,” he explains. “Both BP and Shell will be opening petrol stations in parts of China and both are actively looking at expanding their operations.

“Then you have new energy opportunities. Offshore wind is a key area of strength in the UK.” There are many major offshore wind programmes planned in China, Ashworth points out, and the UK has world-beating technology in this area. There have been some great examples of collaboration already.

For example a UK-China joint centre on offshore renewable energy has been established in Yantai, Shandong province in a collaboration between the UK’s Renewable Energy Catapult and TusPark, anchoring the relationship in science, innovation and trade as well.

“There are lots of opportunities on energy transition, not just from offshore wind, but other aspects of renewables, including energy storage and how that is transmitted and connected to the grid. Areas we have a lot of experience and expertise in, which we can share with China,” says Ashworth.

“Our strategy has a high alignment focusing on decarbonisation, energy transition and digitisation, including connected design, connected work and connected operation into China,” says Dr Zhi. “We are in discussion with one of our clients about how to digitise their large scale complex asset. We also believe there is a huge potential for offshore wind and floating wind in China. Therefore, the transformation for the Chinese energy industry is a welcome change as it is highly aligned with our expertise.”

Ashworth goes on to explain that there are many other interesting areas of innovation that the DIT are keen to watch develop, including a collaboration between BP and Chinese ride-sharing company Didi on electric vehicle charging stations in Guangdong.

Britain is a global leader in renewable and wind farm technologies

Another key UK strength is building a strong regulatory environment that creates certainty for investors and also being very open to international investment, explains Henry. “It goes both ways – it’s not just about the UK exporting to China but about the role that China can play in the UK’s own energy infrastructure. So whether that’s major projects like Hinkley Point C and the nuclear sector or investment into North Sea oil and gas, into offshore wind – there is a very healthy two-way relationship there on trade and investment, which underlines how much collaboration there is between the two countries that plays to our mutual strengths.”

“We have a lot of different types of collaboration, whether that’s science and innovation, or early-stage research; on policies and regulation and providing the right framework for investment into clean technologies; or on the DIT commercial side. It’s a broad range of collaborations, not just in Beijing but in all consulates (Shanghai, Guangzhou, Chongqing and Wuhan). Given that the UK has so many strengths on low carbon energy and China is also a global leader on low carbon energy, it’s a natural area for practical collaboration.”

International collaboration

The law also included a plan to set up a ‘cross-nation energy information service system,’ which will hopefully see China becoming more involved in international cooperation platforms and committing to open markets and foreign competition:

“Article 89 says that the energy department will establish an information platform for international energy cooperation,” says Henry. Our first response is to say that this seems to be a positive step and we would love to have more data transparency around how China engages internationally. It looks like a great initiative and if they are open to working with others on the platform then we would be interested to work with the Chinese government.”

However, according to Dr Zhi from Wood, there are still obstacles that could make collaboration difficult. “Cybersecurity is one of the hot topics in the energy industry in China. More and more, clients are required to keep their project data and engineering data in China, which is a challenge to international companies like Wood. A mega project normally requires global assistance, meaning project data often flies through systems that are located in multiple countries. If the data must remain within the Chinese border, it will take more time and push a higher budget.”

Dr Zhi also says that it is vital for China to think about how to retain the total values that can benefit social and economic development, contribute to the national capability, and stimulate productivity of local economy when more inbound investments come: “In-country values could help China to further develop its supply chain and benefit local communities.”

Britain has stringent long-term targets such as the legal commitment to reach net-zero emissions by 2050. Although China doesn’t have a net-zero target, it does have Nationally Determined Contributions under the UN climate change agreement, which fulfil medium-term contributions.

“The value of a long term net-zero target is something we are talking to China about as part of our wider climate change collaboration,” says Henry. “There’s some very positive activity at the sub-national level, with some cities and regions adopting very ambitious targets and plans for low carbon development. This draft law doesn’t include a net-zero target, but the focus on low carbon development and measures to integrate renewables integration and greater use of clean technology does lay the foundation for moving towards this in the future, so that’s really positive.”

Finally, Ashworth is keen to point out that this law is just a draft, and that ultimately, we will have to see how it is implemented and how it might work in practice:

“There’s a lot of interest in what it might mean for the next stage in terms of goods and services that we might be able to provide, and business environment or market access issues. And that’s what we (DIT) are here to help with,” he says.

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The Intergovernmental Panel on Climate Change has recently stated that Carbon Capture, Utilisation and Storage (CCUS) technologies are essential in order to limit global warming to 1.5 °C above pre-industrial levels.

Thanks to developments in science, carbon dioxide is being transformed from a villain into a valuable manufacturing staple and could help tackle challenges brought by the need of environmentally sustainable development.

Worldwide, sustainability has risen up the agenda, and China has been no exception. The Chinese government included measures to reduce the country’s carbon footprint in the latest five-year plan, and announced the first nationwide phase of its emissions trading scheme in 2017.

Thus, climate-conscious Chinese investors will be on the hunt for the next green investment opportunity. What if it lies in carbon itself?

A vital target for reducing the impact of industry on the planet is to cut emissions and achieving net-zero carbon by 2050. In a recent report, the Business, Energy and Industrial Strategy committee forecast that the UK will spend £30-60 billion every year for 30 years to meet net-zero carbon by 2050. A small price to pay compared to the potential long term costs of the climate crisis. But despite the fact that CCUS technologies have been hailed as ‘crucial’ for meeting the target, policy support for CCUS technology has been inconsistent to date.

Nevertheless, it is becoming increasingly clear to policymakers and businesses alike that now is the time to take up such technological solutions if we are to address the climate crisis. At the UN’s Climate Summit in September 2019, Collin O’Mara, chief of the National Wildlife Federation, said that there is no way that net-zero carbon emissions can be reached without CCUS technology.

There is no way that net-zero carbon emissions can be reached without CCUS technology

Meanwhile, some countries are a step ahead of others in taking stock of the potential offered by CCUS. Japan, for example, has announced a strategy to establish commercial-sized carbon capture and utilisation (CCU) technologies by 2023, whilst Canada has provided financial backing to fast track its carbon economy.

For Chinese investors interested in CCUS, the UK offers incredibly fertile ground. For example, in 2019 the UK Government funded its largest carbon capture project, established by Tata Chemicals Europe. Meanwhile, Drax Power Station, the UK’s biggest renewable power generator, is capturing a tonne of carbon dioxide every day using technology from C-Capture.

The process itself is also relatively straight-forward: waste carbon dioxide is captured at the source of its creation, such as from the factories where fossil fuels are burned, or directly from the atmosphere using a range of separation methods. These techniques include the filtration technology used by ClimeWorks, or C-Capture’s chemical solvent that selectively reacts with carbon dioxide in the air. Once captured, carbon dioxide can either be stored underground, or it can be used in the manufacture of a range of products and materials, thanks to recently pioneered utilisation technologies.

Not only are CCUS vital for tackling carbon emissions, but with a whole host of possible applications, new and established businesses across a range of industries are now turning to CCU as part of their sustainability strategies. Practical applications include CarbonCure, which captures waste carbon dioxide to improve the manufacture of concrete. Similarly, Carbon8 Systems permanently captures carbon dioxide for use in the treatment of industrial waste.

The plastics sector could also benefit from CCU. For example, Econic Technologies’ catalyst technology uses waste carbon dioxide as a raw material in the production of polyols, the building blocks of polyurethane. Polyurethane is a plastic widely used in our everyday lives – from the automotive industry to the soles of our trainers and the foams used in insulating our homes.

With 40 percent of the world’s polyol market based in China, and the global polyurethane market valued at £18.5 billion, there is huge economic potential for the technology in China alone. What’s more, the technology’s impact is not restricted to its commercial potential – it could save the equivalent of 2 million cars’ worth of emissions a year. The product performance improves, too, resulting in reduced flammability or enhanced resistance to abrasion.

Turning to CCU could also be an effective response to consumers putting pressure on businesses towards increased sustainability. A report by Nielsen shows that environmental contentiousness has become a necessity for companies, as 66 percent of consumers are willing to pay more for sustainable products – a figure that rises to 72 percent in millennials.

Although a waste product that is harmful to the environment when left in the atmosphere, carbon dioxide has the potential to turn into a useful resource to address the climate crisis. Businesses and investors could reap the economic and environmental benefits of investing in and incorporating CCUS technologies into sustainability strategies. The clock is ticking for industries to act now to meet the net-zero target in 30 years’ time – and CCUS could well be the answer.

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What was your first involvement in environmental business in China?

 I was Corning’s President of Greater China for a decade from 2000, and during this time we were instrumental in cleaning up China’s automotive emissions. Corning has been at the forefront of glass and ceramic engineering for decades and in the 1970s they developed a ‘honeycomb ceramic substrate’ using a material called cordierite. Because this material could withstand high temperatures and was cheap enough to mass-produce, it became the key element in the catalytic converters that are found today in petrol engines around the world.

The substrate is only the size of a Coke can but, due to its honeycomb design, has a surface area larger than a football pitch. It has a threefold use, changing toxic carbon monoxide into harmless carbon dioxide, poisonous nitrogen oxides into nitrogen and water, and hydrocarbons (from unburnt fuel) into carbon dioxide and water.

Corning’s substrates are in more than half of the 180 million cars produced in China

As we were building the first plant in Shanghai to make automotive substrates, China banned the use of lead fuels and required motor vehicles to use electronic fuel-injection engines. We worked at national level to support the work of key Chinese ministries and regulatory bodies to define and develop the standards for car emissions.

Since 2000, China has manufactured an estimated 180 million cars and it’s very likely that Corning’s substrates are in more than half of these. With cars in China emitting more than 200 million tonnes of exhaust pollutants annually, these substrates (and the catalytic converters they make possible) have helped save millions of lives and reduced cases of cancer, lung and other respiratory illnesses.

How did you evolve from cleaning up cars to cleaning up power stations?

Corning’s substrates are also used in Selective Catalytic Reduction [SCR]. This is essentially a scaled up and adapted version of the honeycomb ceramic substrates used in cars, but on a bigger scale and using ammonia injection systems. Nitrogen oxides that are a major cause of acid rain, smog and ground-level ozone, are turned into nitrogen and water. This oxidation technique is also used to catch mercury before it goes into the air.

Remarkably in such a regulation-driven industry, we sold the first SCR systems to power stations in China before there were any rules requiring installation of such systems, first in Fujian, then to power stations in Beijing and Shanghai.

In 2000, there were no SCR systems in China’s coal power stations but it is now estimated that 80 percent use them, making it one of the key technologies used to clean the air in China, reducing emissions of polluting gases and harmful particulates.

“Cleaning up water in China will be even more difficult than cleaning the air”

And you are also working with solid waste treatment too. Can you tell us more about that?

Huaxin Cement treats municipal and sewage solid waste

This is with Shanghai-listed Huaxin Cement, a large Chinese cement and environmental business. Huaxin is addressing the challenge China faces in dealing with the growing problem of city waste resulting from rapid urbanisation. We treat municipal and sewage solid waste and then burn it in our cement kilns. We now have 22 environmental plants with a capacity to treat 3.5 million tonnes of waste a year.

As an example of what can be achieved in one city, Wuhan with its population of 11 million people now sends most of its solid waste to Huaxin, enabling the city to close large landfill sites. Working closely with China’s national regulators and standards organisations, Huaxin is going a long way towards safe disposal of waste, whilst also working on soil remediation and cleaning up polluted industrial sites.

As well as cleaning up the air and land you have been instrumental in also cleaning up China’s water supply. 

Modern Water monitors the quality of water in Chinese water treatment plants uses iridescent 

I worked with a London-listed water technology company called Modern Water. We started in China using CBBC’s Launchpad. We began by testing the market with just a desk in Shanghai, then hired a general manager and a team who today run the company.

Modern Water is a leader in water monitoring, forward osmosis and brine concentration solutions. One technology this British company deploys to monitor the quality of water in Chinese water treatment plants uses iridescent – or glow in the dark – bacteria originally found on coral reefs. As water is passed across the bacteria, changes in the light emitted by them indicate the level and type of pollutants in the water. When high levels of pollutants such as heavy metals are detected, Modern Water’s product sends real-time signals to shut a water treatment plant’s inlet pipes to prevent entry of the polluted water from a river or other source.

We were successful because the innovative technology was fast to market, we worked with a strong local distributor and the product addressed specific and priority Chinese needs.

“The catalytic converters we made possible have helped save millions of lives”

And tell us about your work focused on water conservation.

Xeros Industrial Machine

Water shortage and water pollution will be two of China’s biggest challenges over the next twenty years. Cleaning up water in China will be even more difficult than cleaning the air. I am working with London-listed Xeros Technology Group towards this; they are based in Sheffield and use polymer bead technologies to reduce water used in big global industries such as laundry, tanning and garment finishing.

For the first stage, we have created near waterless commercial washing machines that use up to 80 percent less water, 50 percent less detergent and 50 percent less energy compared to a conventional machine, with greatly reduced effluent going down the drain. Not only that, they clean better and clothes last longer. Hundreds of hotels and commercial laundries are already using them in the USA, Mexico, the Caribbean, UK, Dubai, Australia and South Africa so far.

We are working with Jiangsu Sealion to manufacture these Xeros washing machines, delivering both cost reductions and lower carbon footprints for our customers. Xeros is already a UK-China environmental success story in the making.

What is your most important advice for UK companies looking to enter or grow in this sector in China?

Above all, engage and persevere. Looking back in particular on working with the Chinese Government on cleaning up auto and power station emissions, Bill Gates’ oft-quoted thought is very relevant: “most people overestimate what they can do in one year and underestimate what they can do in ten years.”

For more information on the energy and environment sector contact CBBC’s sector lead James Brodie on james.brodie@cbbc.org

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