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China is now speeding up the pace of city-building.

According to the " Eleventh Five-Year" Plan, the reconstruction of old water supply network which is over 50 years in service and the rebuilding of severely damaged water supply network in old city zones should be completed by the end of 2007. By 2010 the city water supply coverage should be no less than 95%. Waste treatment rate should be no less than 70% in designated cities and areas and the recycled water utilization rate in water stortage cities should reach 20%.

The year of 2005 is quite important for China water affair to step towards marketlization. Chinese government takes water price reformation as one of the three major price reformation projects. As waste treatment fee came into collection and the water resource fee was improved in 2004 then in 2005 the water price in main cities rose a lot, which beyond people's expectation. In around 2005, the increase rate of water price in major cities of China, especially in Beijing and Shenzhen etc., the waste treatment fee increased by over 50%.

The national Development and Reform Commission released the suggestions on strictly restraining from the unordered construction of power station projects in Nov 2004. The issue of this suggestion and macro control policies has caused some influences, especially on the situation of electricity short and even leading to an over-plus situation.

China's generating equipment industry will still see a large market space in the long run. During the 11th Five-year Plan period, China will maintain a power construction scale of about 30-40 million kW each year. The state will actively engage in the hydropower construction with an installation rate reaching 23%-25%, and continue to reduce small-sized thermal power station construction while introducing high-parameter, high- efficiency and supercritical thermal power units with sigle-unit capacity over 300 000 kW, and properly develop the new green power projucts like nuclear power, natural gas power, wind-power and solar power.

The recycling industry in Qingyuan City has a history of 20 years. Since its inception, it has grown into a largescale industry with local characteristics and an excellent reputation for collection, dismantling and processing waste materials.

Renewable resources refer to so called waste materials generated in the course of daily life or manufacturing that have degraded in value but can be recycled and re-used. Substituting these resources for primary raw materials reduces energy consumption and pollution levels. It is hence little wonder that the recycling industry, as the most important step in the development of a recyclable economy, has received strong support from government around the world.

A relatively inexpensive option nuclear power is another area in which china is seeing significant growth. Nuclear-generated power, a source of 23 billion kilowatt hours in 2003, is projected to total 66 billion kilowatt hours in 2010. China's geography includes abundant supplies of uranium and ample and non-controversial space for nuclear byproduct disposal.

Demestic sources, however, still account for around two thirds of oil consumption. Traditional fields are located in China's northeast, while a number of newer sources are under development. Rich offshore supplies exist in the Bohai Sea, the large gulf that stretches inland within less than 200 km of Beijing, in the Pearl River Delta near Guangdong, and East and South China Seas.