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ARTICLE · 09 JANUARY 2009

The Guide To Operating In The Chinese Electricity Sector

Opportunities for foreign investors into the Chinese electricity supply industry have been steadily increasing since 1992, when the market was opened to foreign investors.

ChinaEnergy and Natural Resources
Munir Hassan
Munir Hassan
Jonathan Selvadoray
Jonathan Selvadoray

Opportunities for foreign investors into the Chinese electricity supply industry have been steadily increasing since 1992, when the market was opened to foreign investors. China has laid out its development plan up to the year 2020 and as a uniquely structured market, there are a number of issues to be aware of when investing in this industry and dealing with stakeholders.

With the spectacular growth of the China economy, China's electricity production is said to experience a steady growth rate of an average of 11.5% each year in the next 50 years. To meet this demand, China is looking for international cooperation, including equipment import, technology transfer and foreign investment. Although China's electrical power output is second in the world, on a per capita level it remains extremely low. Finally, with China's commitment to green energy, foreign energy technologies are well suited to help China curb power related pollution.

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