12 March 2004
Growing demand for "green" products in China
| Demand on the Chinese mainland for environmentally-friendly products and services is growing rapidly, and Hong Kong companies are advised to take advantage of the development.
A study, carried out by the Trade Development Council (TDC) released today (12 March 2004), notes that the demand is being prompted by stricter environmental controls on the mainland and growing overseas discrimination against products that damage the environment.
The survey, conducted by TDC's Assistant Chief Economist Daniel Poon, advises "green" product suppliers and service providers to look out for the next round of concessions by Cepa, the Closer Economic Partnership Arrangement between the Chinese mainland and Hong Kong.
Cepa already offers zero tariff to certain machines and systems that are environmentally-friendly. The next round is expected to extend the concession to more items.
A new ordinance, called the "Cleaner Production Promotion Law" which went into effect on the mainland last year requires manufacturers there to conform to stricter environmental protection practices.
Mr Poon points out that Hong Kong companies engaged in air and water pollution prevention, disposal of solid waste and waste management should be able to gain a slice of the mainland's growing green market.
The economist said these companies, being mostly small- and medium-sized enterprises (SMEs), can play the "middleman" role by bringing the latest overseas technology to the mainland and customising it for mainland use.
According to another environmental study - also released today - consumers in developed countries such as the US, the UK and Germany are highly green conscious these days and are demanding products that are environmentally friendly.
The study found that 20% of population in the US and the UK and about 50% in Germany prefer buying green products. Survey in the US also shows that consumers are willing to pay as high as 20% more for green products. The trend is prompting more and more manufacturers to produce goods that meet environmental standards such as those that carry the "Green Seal" and "Energy Star" labels in the US, the EU Eco-label and the German "Blue Angel" label in Europe, or the "Eco Mark" and "Eco Leaf" stamps in Japan.
To meet consumers' expectations, companies like 3M, Whirlpool, Philips and HP have strengthened their Supply Chain Environmental Management (SCEM) procedures and are putting pressure on their suppliers to do the same.
The report also urged Hong Kong exporters to be mindful of global trends that can affect their product designs and development and to heed the growing demand worldwide for green products.
This new report is available at TDC's Retail Outlets. It can also be purchased through the TDC Bookshop section in the TDC's trade portal: www.tdctrade.com.
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