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China's water outlook becoming less murky

Overview

Securing a safe and reliable water supply for China's inhabitants is one of the biggest challenges faced by Beijing. But price controls on water utilities have hindered progress. Despite rate increases in some areas, government allocations and the revenue water companies earn from consumers has barely covered costs. But now, the government appears to be recognising that market mechanisms need to be used to encourage investment and foster efficient use of water resources.

The...

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