Japan's Daikoku Pharmaceutical Co., Ltd. has recently taken a significant step in expanding its global footprint by establishing a wholly-owned subsidiary in Shanghai—Daeki Anbu Environmental Technology (Shanghai) Co., Ltd. This new venture positions the company to tap into China’s rapidly growing environmental protection sector, an industry that experts predict will see substantial growth. With limited public and private funding available, foreign capital is increasingly seen as a key driver for development in this field.
Daiyuki Koki, the general manager of Daikatsu Abe Environmental Protection Technology (Shanghai) Co., Ltd., disclosed that the newly formed company has secured approval from regulatory authorities to produce the world’s first chlorine dioxide disinfectant capable of safe use in the human body, along with related gas equipment. This innovation highlights the company’s commitment to advancing environmental and health technologies in China.
Daikoku is not alone in its interest. The Chinese environmental protection market, often referred to as the "green cake," has become a major attraction for foreign investors aiming to capture a share of the booming sector. According to statistics, between 2001 and 2005, the Chinese government allocated $8.5 billion for environmental protection, while foreign investment in the sector exceeded $6 billion.
For instance, U.S.-based Golden State (Holdings) Group built a sewage treatment plant in Beijing, transforming the once-polluted Liangshui River into a scenic water park. Similarly, French multinational Veolia has established over 20 wastewater and drinking water treatment plants in China through acquisitions, becoming one of the most active foreign players in the water sector. Another example is U-Tech International Environmental Technology (Beijing) Co., Ltd., a joint venture between the U.S. International Environmental Management Corporation and Singapore’s United Engineering Group, which plans to collaborate with local firms in Sichuan through the BOT model.
Beyond direct investment, many overseas companies are entering the Chinese market through joint ventures, leveraging their advanced technology and financial strength alongside local partners who benefit from lower operational costs and deeper market knowledge. Today, foreign investment spans the entire environmental industry chain, including production, services, development, marketing, consulting, and management of eco-friendly products, as well as resource recycling and clean energy initiatives.
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