Why does China, which has the world's largest environmental protection market, never have a world-class environmental protection company? This problem not only disturbs investors, but also confuses all entrepreneurs who want to make achievements in this industry. In China, a large number of listed companies are making cross-border mergers and acquisitions, transforming the main business into an environmental protection, and a series of state-owned enterprises, including the “premier†large group and the provincial iron and steel groups, have made every effort to drill. Environmental protection industry. New players continue to join the same time, many domestic companies also actively carry out overseas mergers and acquisitions, "If there is something to buy in the world, the first thing to think is whether there is a buyer in China," an industry veteran told the "Excellence" reporter. The strong interest in the capital market is accompanied by the increase in the profitability of listed environmental protection companies. According to statistics, only about 3 of the 25 environmental protection companies in the two cities have experienced declines in performance. The increase in the number of orders and active mergers and acquisitions in the same industry are the main reasons for the increase in profitability. At the same time, however, the environmental protection industry still faces many problems while increasing profits and expanding its scale. Is the effectiveness of governance significant, whether project quality is guaranteed, whether market competition is fair, the legal system, and whether environmental supervision is reasonable and effective? These are problems that cannot be avoided in the rapid development of the industry. The helplessness of environmental protection companies Zhao Tian, ​​the chairman of Boten Environment, once asked the friends of the capital community why so much money was trying to get into environmental protection companies. The answer was simple: In today's market environment, environmental protection is more of an investment value. With the promotion of capital, the competition in the environmental protection industry has also become increasingly fierce. The overheating of the industry will bring some new phenomena and patterns to its own development. Of course it is good as well as bad. The good thing is that the business model of the environmental protection industry has achieved innovation and the industrial chain has expanded. For example, the original sewage treatment industry may now be responsible for the operation of the pipeline network at the same time. It will rely on the integration of pipelines and networks to gain new competitive advantages. The original waste-to-energy power generation industry must now include both clearing, transportation, and trans-shipment into the system. On the bigger cake of the entire industry, require companies to have more comprehensive capabilities. In addition, the transition from the traditional BOT (build-operate-transfer) to the PPP (public sector and corporate joint venture) model has also enabled all levels of government to participate more actively in environmental protection construction than before. However, problems in the industry still exist in large numbers. Zhao Hao said that environmental governance itself is part of the cost, and the willingness of Shi Zhifang to invest is not strong. It is precisely because of this that a country’s industrial structure is highly polluted, and the pollution-contributing environmental industry is highly developed, which is logically not valid. Under this paradox, there will be a lot of irrationality in the industry. The “Regulation No. 78†of the General Administration of Taxation, widely criticized by the environmental protection industry, requires a value-added tax on sewage, garbage, sludge disposal services and recycled water. This means that the good time for exemption of VAT in the above-mentioned areas is over. “It is normal for the structural tax increase of high-polluting industries and the use of tax incentives to support the development of the environmental protection industry and the improvement of the environment. However, this document is not consistent with the general direction of promoting environmental protection.†Zhao Hao believes that this will obviously lower the industry's profit level. In addition, for local governments, the greatest consideration for environmental protection investment is safety and cost, rather than the ultimate effect. 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Why does China not have world-class environmental protection companies?