China is becoming a major supplier of fresh water production technology as dwindling natural resources at home push Beijing to invest in desalination and purification. Chinese companies are already selling seawater desalination membranes, filtration equipment and engineering services to Egypt, Saudi Arabia and the United Arab Emirates.
The supplies are often part of infrastructure projects under the “One Belt, One Road“ initiative, which links Chinese capital and construction companies to emerging markets. Even Gulf countries, which have been pioneers in desalination for decades, are turning to Chinese manufacturers for their ability to produce equipment on a large scale.
Equipment exports are growing
China exported more than $2 billion in water filtration and purification machines in 2025, up 25% from $1.6 billion in 2020, according to UN Comtrade data.
Chinese company Vontron Technology said it had shipped more than 30,000 seawater desalination membranes to countries along the Belt and Road Initiative last year, enough for more than 300,000 tons of daily capacity.
The sector's expansion is also linked to China's domestic needs. By the end of 2025, the country had 167 seawater desalination projects with a total capacity of 3,076,805 tons per day. The capacity increased by 221,283 tons per day from the previous year. According to Chinese state media, the average production cost is between 4 and 8 yuan per cubic meter.
Pressure on water resources
China's South-North Water Transfer Project is moving billions of cubic meters from the Yangtze River basin to drier northern regions. But the system is constrained by high energy costs and dwindling surpluses in the warming river basin.
Saleh Al Habti, China representative for Saudi developer ACWA Power, said costs are rising and water quality is deteriorating in some areas. He said desalination would become a major export area for Chinese manufacturers, similar to wind and solar power.
“Once the necessary infrastructure is built, China will be the leader“, Al Habti said.
Market estimates cited by Reuters predict that China's desalination sector will grow from $1.84 billion in 2024 to $4.66 billion in 2033, corresponding to an average annual growth rate of about 11%.
Chinese equipment attracts foreign companies
ACWA Power says that more than 90% of the renewable energy equipment it buys comes from Chinese manufacturers. The company sources about 70% of its global water equipment from Chinese suppliers.
The Saudi developer has committed to investing up to $30 billion in China by 2030. It is working with companies such as PowerChina and China Energy Engineering Corporation and plans to spend at least $15 billion annually over the next three years on Chinese equipment in the areas of renewable energy, green hydrogen and desalination.
The sector faces significant hurdles. Building water networks between several cities requires massive investment and centralized planning. Public attitudes are an additional challenge. Al Habti said many Chinese still view drinking desalinated water as taboo, even as local authorities are ramping up capacity.
Sources: reuters.com, whbl.com