'Policy dependency syndrome'
Though the air quality monitoring industry could be worth billions, the business is nevertheless constrained by government policy. This "policy dependency syndrome" emerged in China along with the policy of reform an opening up over 30 years ago.
According to a technician who works at the China National Environmental Monitoring Center, the country started setting up its environmental monitoring network around 2000, when the work was mostly done manually.
The technician said that after ten years of effort, the monitoring network has still not reached any county-level cities, a problem which mainly lies in insufficient financial resources. The first time that coverage of all prefecture-level cities was even considered was in 2008, he added, when the government allocated 12 billion yuan ($1.86 billion) for the country's environmental protection work.
Clearly, progress is directly related to government policy. Once there is a favorable policy to support the work, further success can be achieved in quality monitoring.
And with the release of the news that China plans to lower levels of small particulate pollutants in key industrial regions and cities, many entrepreneurs are seeing dollar signs.
'Made in China' vs. imported devices
In China there are currently about ten enterprises that produce air quality monitoring systems, including Hebei Sailhero Environmental Protection High-tech Co, Beijing Zhongsheng Tai Ke Environment Science & Technology Development Co, and Anhui Landun Photoelectron Co.
Foreign companies such as Automated Precision Inc (API), Thermo Fisher Scientific Inc and ecoTECH Energy Group Inc have also set up offices in China and provide monitoring devices.
According to a reported cited by the Nanfang Weekend, Hebei Sailhero's market share is about 40% in terms of air quality monitors, while Thermo Fisher's is about 33%, but imported devices usually show better performance in precision and durability.
With its price advantage, Hebei Sailhero is ahead for the time being. However, officials from the China National Environmental Monitoring Center revealed that the company must improve its workmanship and ensure the quality of monitoring systems quickly. Otherwise, it may lose its dominant position.
