Is China becoming the Silicon Valley of the green world?
The question is prompted by the news that Wang Chuanfu, founder and chairman of BYD, the battery and electric car company, is now estimated to be China’s richest person, followed Zhang Yin, whose family controls Nine Dragons Paper, a paper recycling and packaging company.
As Rupert Hoogewerf of Hurun, the Shanghai consultancy that draws up the annual list, says in the FT story reporting the 2009 results:
“It seems to me pretty significant that the two richest people in China are both now from companies that have an important green element.”
It reminds me of a comment by Andrea Spring, a Republican staff member for the House of Representatives energy and commerce committee at last week’s FT US Energy Business conference:
“China is moving so rapidly on wind power that the US is being outstripped . . . The CEO of Suntech is the 7th richest man in China and is going to be the next Bill Gates. China and India will own [green technology].”
In fact, as the FT story says, Shi Zhengrong of Suntech has slipped down the rich list this year:
Not all China’s green entrepreneurs have fared so well over the past year. Peng Xiaofeng of LDK Solar and Shi Zhengrong of Suntech, both solar panel manufacturers, have dropped out of the top 10 after their share prices fell sharply on fears of substantial overcapacity in the industry in China.
Still, the point remains. Chinese technology companies are managing to combine the global demand for green technology with low-cost manufacturing to get ahead of their global rivals.
