2014-15 Canada-China Business Forum Magazine | Page 66
URBANIZATION
it aims to have 20 per cent of the
country’s energy demand sourced
from renewables by 2020. Earlier
in 2014, the Central government
announced it would exempt electric
cars and other “new energy” vehicles
from purchase taxes, adding to the
government’s generous subsidies for
the purchase of electric automobiles.
Potentially the most pressing
problem facing China’s urbanization
project – and indeed the general
well being of its population – is
water supply. In 2012, Hu Siyi,
Vice Minister of Water Resources,
declared that fully two-thirds of
China’s cities were water-needy
and that 40 per cent of China’s
rivers were polluted and unfit for
consumption. Part of this issue is
geographical. Northern China
is naturally much drier than the
south. One of the solutions the
Central government has turned to
is the C$66.8 billion South-North
Water Diversion Project, which
channels water from southern and
western China to thirsty cities in the
north. Recognizing the problems
inherent in the ambitious project,
the government is also seeking ways
to improve the efficiency of water
usage.
There are openings here for
companies who can provide
environmental services and green
technologies. A high-profile example
is the P3 in Pudong between the
Shanghai government and the
French water company Veolia.
The project completely digitized
Pudong’s water pipe system to track
damage and wastage through the
use of Geographic Information
System (GIS) technology. Canadian
companies have lagged behind
European firms in terms of
providing green technologies to
China, but there is a large and
varied market here that could be
further developed with assistance
from the Canadian government. A
good example is the 2014 Canadian
trade mission to China to promote
Canadian sustainable technologies,
including water treatment and soil
remediation solutions.
hxdbzxy/Shutterstock
The new urbanization plan will
affect not only cities but rural areas
as well. As farmers leave the land,
the Central government is shifting
China’s food production system
towards a North American model
based on industrial agriculture.
Because of China’s complicated rural
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property rights laws, the agricultural
sector can be tricky for foreign
companies to navigate. But for
Canadian companies willing to work
closely with local partners, there
may be opportunities for training
and technology transfer in China’s
nascent agri-food sector. Canadian
food products may also find a market
among China’s growing middle
class. They are turning towards
organic and imported foods in
response to the food safety scandals
of recent years.
The urban service sector will also
see a significant expansion as
incomes rise and the population
ages. China’s one-child policy is
already challenging the traditional
family model of elderly care. With
so many single-child families, it is
not uncommon for adult couples to
be faced with the weighty task of
caring for four older parents. Such
demographic and cultural shifts
will increase the demand for homes,
health care and other services for
seniors in China’s cities.
implement urbanization targets
set by Beijing. Over-ambitious
investment plans may contribute
to unstable real estate markets in
small and medium-sized cities.
One thing that is clear is that
China’s urbanization will have
international implications.
Canadian companies who are
able to provide the technology
and expertise to realize China’s
new urban plan will be defining
a new picture of what global
urbanism means in this century.
\\ JC
Jessica Wilczak is a PhD candidate
at the University of Toronto in the
Department of Geography and Program in
Planning. Her doctoral research examines
urbanization in the greater Chengdu area
following the Wenchuan earthquake.
There is cause for optimism about
China’s new urbanization plan.
China’s leaders are committed to
making growth socially equitable
and environmentally sustainable.
They seem to welcome international
participation in this new phase of
China’s development. Canadian
companies looking to participate
should pay close attention to
locally-specific policy, economic
and environmental conditions. In
the near-term, urban growth and
income levels will continue to be
regionally uneven. There will also be
severe growing pains as municipal
governments work out how to
integrate rural migrants into urban
economies and how to finance and
CANADA CHINA
FORUM
BUSINESS
2014-2015 ccbc.com
Wei Ming/Shutterstock
These opportunities come hand in
hand with serious environmental
concerns. China is still dependent on
coal for energy production, and the
surge in car ownership has left many
Chinese cities highly congested and
polluted. The Global Burden of Disease
Study 2010 suggested that outdoor
air pollution contributed to 1.2
million premature deaths in China
in 2010. The glimmer of hope in
this smoggy cloud is the impressive
capacity of the Central government
to spearhead innovative, large-scale
projects. The Central government
is currently the world’s leading
investor in renewable energy and
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