China's Fast Growth Causes Water Shortage Crisis Water Technology Creates Viable Solutions for China

By Fei Wang,www.China-AsiaStocks.com, www.Water-Stocks.com

November 2005

As China's economy booms, the impacts on its environment are becoming more evident. China, for instance, is home to 16 of the 20 most polluted cities in the world. But by far the most serious environmental issue that the Chinese urgently need to resolve is that of water. The country is facing increasingly frequent and desperate shortages, disastrous flooding in some areas, and dangerous levels of pollution. And the problem is not just environmental - insufficient water is already limiting industrial and agricultural output in some areas and threatening to curb China's high economic growth rate and food production if solutions are not found quickly.

On November 22nd the water pipes in Harbin, China were shut after an explosion at a chemical plant that occurred on November 13th only a few hundred meters from the Songhua River, which supplies water to Harbin, a capital city with four million population. Five people were killed in this explosion and approximately 100 tons of benzene flowed into the SongHua River. By the 27th, after Songhua River met the water safety qualification level for a continuous 12 hours, the water supply to the city was restored. The whole water shut down lasted for 4 days. During this 4 days, all elementary and high schools, bathhouses, car washes and restaurants were all shut down. Most bottled water was sold out even with the price tripled. This is one of the largest water contamination crises in the world, which draws additional attention to China's serious water pollution and water shortage problems.

Right now, China is moving towards a greater emphasis on alternative water generation technologies, in hopes that this will positively impact the need for quality water systems. Hendrx Corp (OTCBB: HDRX), a developer, manufacturer and distributor of water generation, filtration, ionization, and purification devices, is working towards meeting the growing water demands through their technology. With the ability to generate water from the atmosphere, Hendrx's portfolio of products is targeted towards addressing the industrial and residential water shortage situation.

As the challenges of economic growth take their toll on the nation's water supply leading to shortages, pollution, and a growing need for improved technology, the water industry faces considerable opportunities for years to come as the sector helps to address China's needs.

Fei Wang

Fei Wang holds an Honors Bachelor of Commerce from University of British Columbia Sauder Business School, with double major in Finance and Marketing. She has experience in investment banking and advertising in Canada, China and Korea, with a firm academic background.

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