China Sets Water-Saving Goal to Tackle Looming Water Crisis

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Earlier this month, China’s National Development and Reform Commission (NDRC), Ministry of Water Resources, and Ministry of Construction jointly released a water-saving plan to cut the nation’s water use per unit of gross domestic product (GDP) by 20 percent within five years. The ambitious plan is expected to save China a total of 69 billion cubic meters of water, mainly in the agriculture and industry sectors. China has set a similar goal for energy efficiency, aiming to reduce energy consumption per unit of GDP by 20 percent by 2010, but it missed the 4 percent annual reduction goal last year.

China’s industrial water efficiency lags far behind many other countries. To generate 10,000 yuan (US$1,250) in GDP, for example, China uses three times more water than the world average, and seven times more than the United States. Only 60–65 percent of the water used by Chinese industries was recycled or reused in 2004, compared to 80–85 percent in most developed countries, official statistics report. 

A recent nationwide water assessment, conducted by the Ministry of Water Resources, shows that water resources have declined sharply in northern China, especially in the Yellow River Basin and in the basins of the Huai, Hai, and Liao Rivers. Runoff and total water resources in southern China have increased by around 5 percent.

Not accounting for excessive groundwater depletion, the nation’s annual water deficit is nearly 40 billion cubic meters, or 10 times the demand of Beijing. Over the past five years, some 385 million mu (26 million hectares) of farmland in China have suffered from drought annually, causing crop losses of 35 million tons per year. Nearly 320 million rural residents lack access to clean drinking water. And roughly 400 cities are short of water supplies, with 110 of them facing severe shortages, the vice minister of water resources told Xinhua News. 

One promising solution to China’s thirst for water is to use desalinized water in the most water-intensive industries, including thermal power, petroleum, and chemicals. As the technology has matured, the cost of desalinization has dropped to 5 yuan (63 U.S. cents) per ton, though this is still higher than the price of standard running water, at 1.5–2 yuan (18–25 U.S. cents) per ton. The government plans to provide tax incentives and subsidies to boost the production and use of desalinized water in the eastern coastal regions, Guangming Daily reported.