ENVIRONMENT : CHINA'S CHALLENGE OFFERS EXCELLENT OPPORTUNITY FOR EUROPE.

The Chinese population is increasingly concerned about environmental problems as a result of the country's unbridled industrial activity and accelerated economic development. Faced with the prospect of an environmental disaster, Beijing has made the strategic choice of shifting to green growth, but the transition requires appropriate technologies. With its expertise in this area, the European Union has developed targeted cooperation with China, offering an excellent opportunity to European companies. These need to be seized quickly, though, because Beijing is making great strides.

Time is of the essence, though, because Beijing is making great strides: according to an OECD report published in 2012, China is the world's second largest producer of clean technologies. Its investments in green energy climbed by 50% in 2009 (from 2008) to US$34.6 billion(1), compared with US$2.5 billion in 2005. In the last decade, it has become the world's number one producer of solar panels and components, covering nearly 65% of the market. Chinese exports to the EU alone totalled 21 billion in 2011.

Warning signals are multiplying, including gridlock in urban centres and chemical pollution of rivers and soil, prompting the Chinese authorities to place the environment at the heart of the country's 12th five-year plan for economic and social development. This sets out the strategic framework for the transition to green growth and sustainable development and contains guidance not only for the years 2011 to 2015, but also for the medium to long term. The overriding strategic objective is to achieve inclusive, environmentally sustainable and competitive economic development.

The EU has not remained a passive...