China’s Water Network Investment to Exceed 6 Trillion Yuan
China has announced that investment in its national water network under the 15th Five-Year Plan (2026-2030) will exceed 6 trillion yuan (approximately US$830 billion), signaling a major expansion of infrastructure spending and significant growth opportunities for the water conservancy sector, according to Xinhua News Agency.
The water network ranks first among the “six networks” — a set of critical infrastructure networks that China plans to accelerate under the 15th Five-Year Plan. According to estimates from Debang Securities, average annual investment in the water network during the five-year period could reach 1.2 trillion yuan or more, reflecting the scale and urgency of the country’s water infrastructure ambitions.
Context: A Growing Infrastructure Priority
The announcement builds on significant momentum from the previous planning period. During the 14th Five-Year Plan (2021-2025), China completed a total of 5.6841 trillion yuan in water conservancy investment — 1.6 times the amount invested during the 13th Five-Year Plan period. In 2025 alone, China completed 1.2848 trillion yuan in water conservancy construction investment, marking the fourth consecutive year that annual investment exceeded 1 trillion yuan, as reported by the Ministry of Water Resources.
China has already built the world’s largest, most functionally complete, and most populous water infrastructure system, with the national water network covering 80.3% of the country’s land area. The 15th Five-Year plan aims to build on this foundation with a new wave of large-scale projects.
Strategic Framework: The “Six Networks”
On May 22, 2026, the National Development and Reform Commission (NDRC) announced that China would accelerate the introduction of plans and implementation schemes for the “six networks.” NDRC spokesperson Li Chao stated that these networks serve as the “hard support” for modernization, capable of deeply tapping domestic demand potential while supporting industrial development, as reported by CCTV News. The water network is ranked first among these six networks, underscoring its strategic importance.
Key Developments and Expert Analysis
“Water network construction directly forms large-scale effective investment, solidifying the investment foundation,” said Wu Youhong, Director of the Innovation Investment Research Office at the NDRC Macroeconomic Research Institute. “Water network projects have high individual investment amounts, large numbers of projects, and strong sustainability, making them a stable ballast for fixed asset investment.”
Wu noted that water network construction spans dozens of industries, driving upstream and downstream industrial chain development and activating diverse market vitality.
From a market perspective, Li Qiusuo, Chief Domestic Strategy Analyst at CICC (China International Capital Corporation), highlighted the upstream impact: “Water transfer hubs, tunnels, pipeline networks, and dam projects are large in scale, driving sustained demand for steel, cement, sand and gravel aggregates, and PCCP pipes, which is expected to boost building materials production and sales.”
Emerging Opportunities: “Water Conservancy + Technology”
Beyond traditional construction, the current focus of water network construction has shifted toward technology integration. Wu Yun, Deputy General Manager of the Industry and Investment Consulting Division at China Investment Consulting Co., Ltd., observed that “digital twin watersheds, smart water management, and hydrological monitoring are booming new business forms.” He added that water network construction is increasingly tied to urban renewal and ecological governance, shifting from pure engineering construction to long-term operation and maintenance.
The Guangxi Longjiang River Valley Irrigation District project exemplifies this evolution. As the first national demonstration project using the “equity investment + EPC + O” (investment-construction-operation integration) model, it has an estimated total investment of 9.939 billion yuan and is now accelerating toward implementation.
Market and Industry Impact
The investment wave is already generating tangible results. On June 5, Qinglong Pipe Industry announced a pre-qualified bid for the Ningxia Qingtongxia Irrigation District modernization project worth 225 million yuan. Earlier, on May 20, Hanjian Heshan disclosed a 440 million yuan contract for the Guangxi Zuojiang water diversion project. Multiple pipe manufacturing leaders have secured major water conservancy contracts this year.
Dayu Water Saving, the first A-share listed company in the water-saving sector, is transitioning from a project-driven model to an “engineering construction + long-term operation + digital O&M” approach. A company representative noted that the Guangxi Longjiang project has a four-year construction period and a ten-year operation period, marking a shift toward higher-quality, long-term growth models.
Forward Look
From a capital markets perspective, Li Qiusuo of CICC believes the water conservancy sector has medium-to-long-term supporting factors. Continued project releases and improving industry sentiment, combined with water pricing reform policies, are expected to improve water utility company performance. Companies with full order books and strong cash flow may see greater performance and market recovery elasticity.
The 6+ trillion yuan water network investment represents a major fiscal stimulus channel for China’s economy during the 15th Five-Year period. As Vice Minister of Water Resources Sun Zhiyu outlined in April 2026, the focus areas include advancing South-North Water Transfer follow-up projects, building digital twin water networks, and deepening water pricing reform — all detailed in the government’s official announcement.
With the water network ranked first among the six critical infrastructure networks, and investment levels set to surpass previous records, China’s water infrastructure push is poised to reshape the country’s economic landscape while addressing long-term water security challenges.