China is expanding its water technology industry as shortages put pressure on natural freshwater supplies. Chinese companies are selling desalination membranes, filtration equipment and engineering services to water-stressed countries across Asia, the Middle East and Africa. They are supplying projects in Egypt, Saudi Arabia and the United Arab Emirates. Many projects receive support through the Belt and Road Initiative, which connects Chinese investment with overseas infrastructure development.
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China’s water technology exports have grown steadily in recent years. According to UN Comtrade, the country exported more than $2 billion worth of water filtering and purifying machinery in 2025. That figure represented a 25 per cent increase from $1.6 billion in 2020. Meanwhile, Vontron Technology reported shipping more than 30,000 seawater desalination membranes to Belt and Road countries last year. PowerChina is also developing a water supply project in Tanzania expected to serve over 450,000 people.
However, China’s export ambitions also reflect growing water challenges at home. Climate change threatens glaciers and river systems across the Tibetan Plateau, which supply water to nearly two billion people. In northern China, excessive groundwater extraction has also created serious shortages in farming regions. The Hong Kong-based think tank China Water Risk warns that declining river flows could threaten economies across Asia. It estimates that water shortages could put nearly half the GDP of 16 countries at risk.
China has made water security a national priority and increased investment in water infrastructure. Its water conservancy spending now exceeds 1.2 trillion yuan annually, according to China Water Risk. The country operated 167 seawater desalination projects by the end of 2025, with daily capacity exceeding three million tonnes. Authorities are also promoting recycled water, desalinated seawater and harvested rainwater. Nevertheless, high investment costs, energy demands and public concerns about desalinated drinking water remain major obstacles.
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Foreign companies are increasingly sourcing water equipment from Chinese manufacturers. Saudi developer Acwa says Chinese suppliers provide most of its renewable energy equipment and a large share of its water technology. The company has pledged to invest up to $30 billion in China by 2030. Industry forecasts also expect the desalination market to expand significantly over the next decade. As water scarcity intensifies, China aims to turn its manufacturing capacity into a major source of global water security technology.