Following photovoltaics and wind power, another industry in China is gaining favor with Middle Eastern countries—desalination.
According to a report by the British Reuters on October 22, as more and more countries around the world face shortages of fresh water, China is rapidly becoming an important supplier of technologies for desalination, filtration, and water purification. Countries in the Middle East and Africa, including Saudi Arabia, the UAE, and Egypt, are increasing their purchases of Chinese-made equipment and engineering services.
It is worth noting that even in Gulf countries where the desalination industry is highly developed, there is a growing preference for equipment made in China. Data from the International Energy Agency shows that Gulf countries account for about one-third of the world’s desalination capacity, with Saudi Arabia being the world’s largest producer of desalinated water.
Saudi Arabia's large energy and water management company Acwa's head of China, Saleh Al Khabti, expressed strong confidence in the development prospects of related industries in China.
He stated that Chinese manufacturers are quickly narrowing the gap with international leading companies, and may reach international advanced levels in the next two or three years. In his view, desalination is expected to become another important export sector for China, following wind power and photovoltaics.
We believe very much in China's development. H Baltati said, "Once it develops to that stage, China will become a leader."
China Electric Power Construction Company and Iraq cooperate on the desalination project in Basra, Iraq. Photo provided by Reuters.
Desalination is not a new technology.
For Gulf countries like Saudi Arabia and the UAE, which lack freshwater resources, converting seawater into freshwater that can be used for drinking water and industrial purposes has long been an important means of ensuring water supply.
But now, as China's manufacturing scale and technical capabilities continue to grow, these countries are increasingly purchasing Chinese equipment.
According to data from the United Nations Commodity Trade Statistics Database (UN Comtrade), China's exports of water filtration and purification machinery will exceed $2 billion in 2025, representing a 25% increase from $1.6 billion in 2020.
Chinese companies’ overseas orders are also increasing.
Chinese membrane material company Woton Technology announced that by 2025, the company will export more than 30,000 desalination membrane components to countries involved in the 'Belt and Road' initiative, with a daily water production capacity of over 300,000 tons.
Desalination membranes are one of the key components of related equipment. In the widely used reverse osmosis technology, seawater is pressurized and passes through special membrane materials, where most of the salts and impurities are retained, resulting in fresh water.
The performance, service life, and cost of membrane materials directly affect the operational efficiency and economic benefits of seawater desalination projects.
In addition to equipment exports, Chinese companies are also involved in the construction of overseas water supply infrastructure.
In January this year, China Power Construction Group announced that it is constructing a water supply project in Tanzania. Once completed, the project will provide water supply services for over 450,000 people.
In Basra, Iraq, China Electric Power Construction also participated with local partners in a large-scale desalination project worth approximately $4 billion.
From equipment manufacturing to engineering construction, Chinese enterprises are participating in multiple links of the overseas water utility industry chain.
And the procurement data of Saudi company Acwa further reflects the position of China's supply chain in the international market.
Habit revealed that among the renewable energy equipment purchased by Acwa, more than 90% comes from Chinese manufacturers; in its global water equipment purchases, about 70% come from Chinese suppliers.
This enterprise also promised to invest up to $30 billion in China by 2030, and to cooperate with companies such as PowerChina and China Energy Engineering Corporation.
In the next three years, Acwa plans to purchase at least $15 billion worth of Chinese equipment each year, covering various fields such as renewable energy, green hydrogen, and desalination.
Habti believes that the pace of technological progress of Chinese manufacturers is impressive.
We spent 15 years building up to this level with our partners. He said.
But he expects that Chinese equipment manufacturers may reach similar levels in just two or three years.
In his view, the desalination industry has the potential to replicate China’s success in rapidly expanding its photovoltaic and wind power equipment in the global market.
Reuters pointed out that China is vigorously developing seawater desalination and water treatment technologies, not just for export purposes.
In fact, China itself also faces challenges related to uneven distribution of water resources, excessive extraction of groundwater in some areas, and water security issues caused by climate change.
Especially in northern China, some agricultural and industrial areas have long faced problems with water resource shortages.
Meanwhile, global warming is affecting alpine glaciers and river runoff.
A research institution based in Hong Kong, China, called “China Water Risk,” warns that by around 2050, the ten major river systems in Asia may experience what is known as “peak water volume” phenomena.
This concept refers to the situation where, as glacial meltwater increases over a period of time, river flow peaks. Subsequently, as glaciers continue to retreat, water levels may begin to decline on a long-term basis.
The institution believes that these changes may affect a large population and economic activities in Asia.
In this context, expanding the use of unconventional water resources is becoming an important direction for China to ensure water security.
So-called unconventional water resources include reclaimed water, desalinated seawater, and rainwater collection and utilization.
Reuters pointed out that currently, about 80% of China's freshwater supply comes from surface water. Non-conventional sources such as recycled water, desalinated water, and collected rainwater account for only 3% to 4% of the total water supply.
China is making efforts to increase this proportion.
According to data from the Ministry of Natural Resources of China, by the end of 2025, there were 167 seawater desalination projects across the country, with a daily water production capacity of 3.0768 million tons. This represents an increase of approximately 222,130 tons compared to the end of 2024.
According to data published by Chinese media, the average cost of producing desalinated water in China is about 4 to 8 yuan per cubic meter.
Meanwhile, China is also continuously increasing investment in water conservancy projects.
According to research institutions specializing in water risks in China, since 2015, the growth rate of investment in water conservancy in China has exceeded that of military expenditure. Currently, the annual investment amount has exceeded 1.2 trillion yuan.
In July this year, China also introduced new regulations on water resource management, further emphasizing the importance of water resource security in national security and economic development.
However, the large-scale promotion of seawater desalination in China still faces challenges related to costs and infrastructure.
For example, large-scale seawater desalination projects require not only the construction of water production facilities, but also a corresponding water transmission network to deliver fresh water produced along the coast to cities and industrial areas with demand.
Desalinating seawater also requires energy consumption. Therefore, electricity prices and the energy structure will affect its economic viability.
Habit also mentioned that in some regions, there are still concerns among the public regarding the consumption of desalinated water.
But he said that Chinese local governments are actively promoting the construction of related production capacities.
Reuters believes that the rapid development of China's desalination industry shares similarities with the growth path of industries such as photovoltaics and wind power.
On one hand, China has a huge market demand, which can support the development of technology and the large-scale production of equipment.
On the other hand, China's manufacturing industry has a complete industrial chain and engineering construction capabilities, which helps to reduce equipment costs and promote advanced technologies to overseas markets.
Professor Benjamin Horton, Dean of the Energy and Environment School at Hong Kong City University, said that China's large-scale development of water treatment technologies holds potential for helping other water-scarce nations reduce the cost of accessing freshwater.
He believes that China has the potential to become an important provider of water resource security solutions in Asia.
"Through the Belt and Road Initiative, infrastructure projects such as water power generation, seawater desalination, flood prediction, irrigation, wastewater treatment, and facilities for adapting to climate change are all expected to continue needing investment." said Houghton.
For Middle Eastern countries, such cooperation is particularly relevant.
Although Gulf countries have abundant oil and gas resources, they generally lack natural freshwater. The lives of residents and industrial production rely heavily on desalination of seawater.
With population growth, industrial development, and energy transitions, the demand for desalination equipment and related infrastructure in these countries continues to increase.
Chinese enterprises can not only provide key products such as membrane materials and filtration equipment, but also participate in the design, construction, and operation of large-scale water management projects.
However, whether desalination can truly become China's next globally competitive export industry still depends on technological progress, equipment reliability, operating costs, and the long-term performance of overseas projects.
Currently, the export value of water filtration and purification machinery equipment from China has exceeded $2 billion. However, this statistics covers various types of water treatment equipment, and does not represent the entire export volume of the desalination industry.
The judgment put forth by Saudi company Acwa is also a prediction of future industry development, not an established market position.
Even so, the procurement and investment plans from traditional seawater desalination powers reflect that the attractiveness of China’s water treatment equipment supply chain in the international market is increasing.
After photovoltaics and wind power, desalination equipment may become another new direction for China's manufacturing industry to explore global markets.
