Business | Clean technology in China

Red light, green light

China’s anti-pollution drive will make it a good place for clean-energy firms

|SHANGHAI

“ENVIRONMENTAL pollution has become a major problem, which is nature’s red-light warning.” Those green-tinged words do not come from an activist. Rather, they come from China’s leaders, who gathered this week in Beijing for a big annual meeting. On March 5th Li Keqiang, the prime minister, vowed to declare war on pollution.

The timing could not have been better, then, for the launch of a firm devoted to the manufacture of greener engines. The same day EcoMotors, a startup backed by Bill Gates and Khosla Ventures (supported by Vinod Khosla, a Californian venture capitalist), unveiled its joint venture with a division of China FAW Group, a local carmaker. The Chinese partner vowed to spend more than $200m on a factory in Shanxi, a northern province, that will produce 100,000 of the new engines a year.

This article appeared in the Business section of the print edition under the headline "Red light, green light"

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