An Chengxin, Vize-Minister:

German Enterprises Committed to the Modernisation of China's Electric Power Sector

In the last 20 years, China has made considerable progress in economic growth, the improvement of the standard of living, and the development of science and technology through reforms and an open policy. The infrastructure of the power sector has developed into an enormous resource for China's economic development. International economic and technological cooperation has played an important role in this development.

Economic and technological cooperation between China and Germany has deepened and increased over the last 20 years. The energy sector is essential in this cooperation. In addition to investing in power projects in China, German companies have delivered power technology and equipment to China and to German and Chinese enterprises for the cooperative manufacture of power equipment. Such projects are aimed at both compensating for shortages in China's domestic production and promoting higher technological standards in facilities by importing foreign state-of-the-art technology and equipment. Moreover, this modern technology is of paramount importance for environmental protection and saving valuable energy resources.

The president of Pacific Consult GmbH, Dr. Kurt Wiesegart, studied at Beijing University in the mid 1970s. He has been involved in energy-related issues ever since. In recent years, Dr. Wiesegart has successfully handled many electric power projects in China as a consultant for the Asian Development Bank. He is very familiar with China's policy, its administrative organisation and its people, especially with regard to the energy sector. Dr. Wiesegart compiled and edited the handbook on "German Enterprises Committed to the Modernisation of China's Electric Power Sector". This book introduces the special experience and expertise of German enterprises of the electric power industry in such areas as power generation, transmission and transformation, power equipment, environmental control equipment, major plant components, electrical equipment, equipment supply, engineering and construction contracts. It also describes the financing procedures of the German Development Bank (KfW). This handbook is an excellent reference source and will be very helpful to the mutual understanding of the two countries' electric power industry, thus promoting cooperation and the exchange of business relations as well as the exchange of equipment and technology.

An Chengxin
Vice President
China Council for the Promotion of International Trade (CCPIT)

Dr. W. Müller, Wirtschaftsminister

German Industry Has Been a Reliable Partner

Two decades of extremely dynamic economic growth have permanently changed China. Industrial and technological development has accelerated in a manner that has captured widespread attention and the prosperity of large parts of China's population has risen.

In the course of this trend, the energy industry, the infrastructure, and environmental protection have increasingly acted as bottlenecks to the country's further modernization. The government of the People's Republic of China recognizes this structural deficit and removing it is one of the development targets that the government now pursues on a priority basis.

For many decades, German industry has been a reliable partner in efforts to modernize China's production base. It also commands a leading position in the area of energy technology and the closely connected field of environmental protection. German companies do more than merely transfer high-tech to China. Together with Chinese partners they also produce energy-related equipment. By providing significant amounts of financial assistance, the German government has supported the work of retrofitting power stations in China with environmental protection equipment. German companies would also be interested in operating power stations in China as soon as the statutory prerequisites (on the basis of mutual benefit) have been created.

The energy sector and energy-related technologies therefore offer prospects that are particularly rich in opportunity for the further development of German-Chinese economic relations.

This handbook gives us a view of German industry's capabilities in this field. It can thus serve our Chinese partners as an important orientation and decision-making instrument for further developing cooperation with German companies.

Dr. Werner Müller
Federal Minister of Economics and Technology