Leaders of the Laundry and Dyeing Association and Enterprises Discuss Water Prices

Wang Xueran (Secretary General of Beijing Laundry Industry Association):
The increase in water prices is an inevitable trend, and it should and must rise.
Paying a few more yuan for water each month is affordable for most families; for a few particularly difficult families, the state can provide some subsidies to solve the problem, so it is not a big issue; as for waste, it goes without saying that it is meant to restrict them and make them pay more, which is justified. The problem lies in that water is a scarce resource, and resource issues often have far-reaching effects. Although it is impossible to cover all related issues, the macro impact must be considered. Neglecting this problem thoroughly will cause endless troubles in the future.
If it is purely out of public interest and after comprehensive consideration, the price should rise without the need for hearings, especially since current hearings seem to be just a formality. However, for decision-makers on water price increases, some issues cannot be ignored.
1. Increasing the price is not a problem; the key is where the increased money goes. The current reason for price hikes is always enterprise operating losses, which I cannot agree with. Enterprises may incur losses, but the reasons must be clarified. Although lacking sufficient evidence, some clues can be seen through certain phenomena: there are many organizations related to water, each with a considerable staff, but none of the ditch-digging and pipe-laying workers seem to be formal employees. Is there no position for ditch-digging and pipe-laying in the staffing? If not, then I might be talking nonsense; if there is, then who should pay for the laborers hired? Also, is it reasonable to have so many organizations and people managing this amount of water? If not, should these costs be included in water management costs?
2. Setting water prices is actually simple: the national resource fee plus depreciation of preliminary construction costs and reasonable operating management fees make up the water price. To adapt to China's water scarcity, price leverage can control water use and allow premium pricing, but this income should go to the national treasury, not remain with enterprises. Water is a resource given by nature and, like other mineral resources, belongs to the state. Operators can only extract reasonable operating management fees from the sales price; the rest should be paid to the state. Now everyone says they are losing money, so it seems the state gets nothing. But why doesn't the state ask? This is not like those small coal mines that explode suddenly, hidden and hard to check or manage. This is in broad daylight, visible to the public. I don't believe the relevant departments are unaware.
3. Our monopoly enterprises often claim to align with the world. Let's talk about aligning with the world. The average monthly income of blue-collar workers in the US is about one to two thousand US dollars, while most of our salaried workers earn one to two thousand RMB, with a roughly 1:1 income-expenditure ratio in their respective regions; gasoline in the US costs about 1 dollar per liter, while in China, everyone knows the price. Oil has an international purchase cost, but water is not imported from abroad, so how does this alignment make sense? Let's compare management costs abroad and here: how many people do they use, how much do they spend, and is ours more or less? Our average labor efficiency is probably lower. If we are aligning with the world, shouldn't this also align? Also, there is serious waste. Invisible waste aside, there are frequent reports of pipe bursts flooding large areas. Has anyone calculated how much is wasted? Who produced the pipes? Who purchased, laid, supervised, managed, maintained, approved, and decided on them? Has anyone asked? I think probably not, or at least not enough. Otherwise, although accidents are often seen and heard of, no one has been held accountable. If someone pursued responsibility every time, would it still happen? Nowadays, builders are responsible for teaching buildings for life; who would dare use such materials and construction? Besides inefficiency, can such waste not cause losses?
If we talk about aligning internationally, then assessing our managers by international average work indicators should not be too demanding. If they meet this standard, we accept it! We also agree to pay international-level wages and international-standard water fees, even if it is 100 yuan per ton! If prices rise, we only ask for a clear and understandable account for everyone!

Ren Fengmei (Secretary General of Shanghai Laundry Industry Association):
All enterprises engaged in the laundry business have a close relationship with "water." "Water" is the fundamental condition for the survival of laundry enterprises. When enterprises prosper and laundry business increases, water usage also correspondingly rises. Laundry enterprises and "water" are interdependent, growing together, sharing prosperity, and inseparable.
Recently, water price increases have been widespread in some cities, which greatly impacts laundry enterprises. The laundry industry provides washing services for various clothing and fabrics of citizens, hospitals, hotels, trains, airplanes, and other enterprises and institutions. It is a low-profit service industry and a major water consumer. Disorderly increases in water prices directly affect the vital interests of laundry enterprises. Currently, water prices for Shanghai laundry enterprises have risen to 3 yuan/ton for tap water and 1.1 yuan/ton for sewage, and the trend continues upward.
In recent years, due to continuous increases in labor, water, electricity, chemicals, and steam prices, the comprehensive costs of laundry enterprises have risen year by year. According to surveys, water accounts for about 10% of the comprehensive cost of large laundry enterprises in Shanghai, labor costs about 30%, energy costs about 25%, transportation costs about 10%, chemical costs about 15%, and depreciation and taxes about 10%. The rising comprehensive costs worsen the already low-profit laundry enterprises. If they continue to compete at low prices, enterprises will be pushed into unprofitable situations. If laundry prices increase, it will affect consumers' vital interests.
Faced with rising "water prices," laundry enterprises must actively respond, leverage their initiative, and adapt calmly.
First, suggestions should be made to relevant government departments. Reasonable proposals should be put forward regarding the water price system and mechanism. It is hoped that under the inevitable water price increase, the price increase plan should be fair, reasonable, and legal, and scientifically and normatively formulated. "Water price" is a very sensitive issue. Excessive increases will directly affect residents' lives and enterprise survival. Price adjustments must have transparent cost audits and fair hearing procedures. Consumer representatives must fulfill their duties in hearings and truly reflect the strongest voice of all consumers.
Secondly, when water price increases directly affect their vital interests, laundry enterprises should formulate reasonable water-saving plans. Large laundry enterprises with conditions can update washing equipment, adopt countercurrent methods, use circulating water for rinsing, and efficiently utilize water resources. For example, actively promoting continuous washing machines (commonly called washing dragons in the industry) can save one-third of water, as well as electricity, materials, and labor; in addition, some laundry enterprises currently use "reclaimed water reuse" projects to recycle washing water, saving water resources. These are innovative initiatives, but the country has not yet established "standards for reclaimed water reuse in laundry water." It is hoped that such standards will be introduced soon to encourage more enterprises to adopt reclaimed water reuse projects, thereby saving more water resources.
In addition, the laundry industry is a reflection of the socialization of household labor. The water price for laundry enterprises should enjoy the same treatment as the water price for household laundry used by the public. Government departments should not classify laundry industry water charges under special industry water standards. Currently, laundry enterprises in Shanghai have to pay sewage fees for tap water, set up facilities for sewage treatment themselves, and then pay fees again for sewage discharge into the pipe network. This triple payment of sewage fees is really hard for laundry enterprises to bear. It is hoped that government departments can stand at the height of "building a harmonious society," consider the actual situation of laundry enterprises, care for and help them reasonably absorb costs and get out of difficulties, so that the public can feel more assured about laundry consumption.

Cai Xiaosong (Development Manager, Beijing Zhengdong Innovation Laundry Service Co., Ltd.):
China is one of the twelve countries and regions in the world severely lacking water, with per capita water resources only one-quarter of the world average. With the continuous economic development in recent decades, the consumption of water resources by people's lives and various industries has rapidly increased. Today, the whole society in China faces a serious "water shortage" problem. The laundry industry itself is a high water-consuming industry. For various reasons, the country currently has relatively loose supervision of the industry, but with the worsening "water" problem in China, reform of the laundry industry is imperative.
How can China's laundry industry break through the "water" problem?
First, we must face our current situation honestly, humbly learn from the experience and technology of developed countries, then recognize our current shortcomings, guide the industry in the right direction, ensure the industry will not be troubled by "water" in the future, achieve green development of China's laundry industry, and contribute to the sustainable development of the whole society.
What is our current situation?
Looking at China's laundry industry, there has been considerable progress over the decades since reform and opening up, and the industry has taken shape. However, we must admit that compared with the same industry in developed countries, we are still in the early stage of development and transformation. Our current situation can be summarized in two sentences:
First, it is dominated by small and medium-sized enterprises, even a large number of workshop-style processing points, with relatively dispersed production;
Second, washing equipment is mainly independent and small-scale, with relatively backward processing methods.
What is the result caused by the current situation? We can understand it through the following data comparison:

Water consumption per kilogram of laundry (kg)
Current common situation in China 28kg
Common situation in developed countries 8kg
Most advanced technology abroad 3-4kg

From the above data comparison, it can be seen that for washing 1kg of laundry, our water consumption is 4 to 9 times that of developed countries, a gap that is shocking. It silently warns us with numbers — the reform of China's laundry industry is imminent!
Where is our way out?
1. The industry’s water-saving behavior needs driving forces
1. Mandatory force — the industry needs to formulate binding regulations, strengthen supervision, create favorable conditions for legally operating formal enterprises, form orderly and reasonable competition and healthy development within the industry, so that enterprises develop a proactive awareness of water saving.
2. Policy encouragement — under the current domestic industry situation, the state should consider policy and financial support for enterprises adopting new water-saving technologies to encourage enthusiasm.
2. Promote the industry to develop in the right direction
1. The current dispersed, workshop-style processing situation must be reversed, and development towards large-scale, centralized laundry factories must be promoted to facilitate overall industry management.
2. Advanced foreign production technologies must be learned, introduced, or independently developed to improve processing efficiency and water utilization efficiency.
Actually, most people have already seen the direction of industry development, and it is an inevitable trend, but the key is how to promote it. Establishing large-scale, centralized laundry factories requires greater investment. Where will the funds come from? Have we created good survival conditions and development environments for large factories? Do we have the ability to operate and manage large laundry factories? How do we use advanced foreign technologies to serve China's industry? These are all challenges we face.
Finally, let us work together to contribute our part to creating a bright future for China's laundry industry!

Zhang Rongyao (Chairman, Beijing Rongchang Technology Service Co., Ltd.):
Recently, many cities have held hearings on water price increases, and people from all walks of life have engaged in heated discussions about the water price hike. As a practitioner in the laundry and dyeing industry, I would like to talk about the water price issue from the perspective of this industry.
The laundry and dyeing industry mainly focuses on laundry services, with dry cleaning accounting for 60% and water washing accounting for 30-40%. Therefore, the amount of water used is not very large, so the water price increase does not have a significant impact on the laundry and dyeing industry. For a dry cleaning shop, the main cost components are rent, staff wages, electricity, and water fees, with water fees accounting for about 2% of the monthly costs, which is a relatively low proportion. As long as the increase is not too large, it basically does not affect the cost structure of dry cleaning shops, but the water price increase will have some psychological impact on users.
China is a country with scarce water resources. The increase in water prices may raise the public's awareness of water conservation, but this is not the only effective way. Regardless of water prices, saving water and protecting water resources should be a common cause for all of us globally. From the development trend of the laundry and dyeing industry, with the gradual increase of environmental protection and water washing, the water consumption of laundry shops will gradually increase, and water prices will also rise. Therefore, whether from the perspective of saving water resources or controlling costs, laundry shops should innovate and explore new effective ways in water-saving processes, such as innovations in water washing technology, water washing processes, water washing chemicals, and equipment. These efforts can play a role in saving water and reducing consumption.
Whether water prices rise or not is not the key issue; the key is how to solve the problem of water resource scarcity. The effective approach is that everyone should start by saving water, all industries should begin with energy conservation and consumption reduction, and the government should strengthen water pollution control and management, rationally use and protect water resources. This is the most critical.
Finally, the biggest impact on the laundry and dyeing industry still comes from housing prices, rent, and employee welfare. These two parts are the main cost points for laundry shops, and if they are too high, they will affect the survival and development of laundry shops.

Xu Fajiang (Training Manager, Beijing Funait Laundry Service Co., Ltd.):
Water resource scarcity, closely related to the national economy and people's livelihood, has become a consensus among everyone. Using price leverage in a market economy society to effectively allocate water resources, regulate demand, prevent pollution, use resources rationally, and promote conservation is very necessary. However, the influence and guidance of interest groups by government departments in water price adjustments play a decisive role. Considering the people and guiding water-using enterprises to actively face the situation is significant for both individuals and society. After all, building a harmonious society is the main theme of all current work. Therefore, the extent and method of price increases should be particularly cautious.
From the perspective of the laundry and dyeing industry, regardless of the different development levels and business types among cities, even within the same city, the water demand of enterprises with different business models varies greatly. Laundry shops with complete dry and water washing services, individual practitioners mainly engaged in water washing, and medium to large water washing factories mainly washing linens have very different water demands and corresponding cost expenditures. Moreover, with the increase in people's income and changes in consumption concepts, pursuing environmental protection while the proportion of water-washed clothes exceeding dry cleaning has become a trend, inevitably increasing water costs for operators. To address cost increases, the usual approach is to raise washing prices and transfer the cost to consumers, but a better way is to tap internal potential, such as reducing water usage through equipment renovation, updating technology to reduce water consumption, and adding water treatment and recycling devices to save water, thereby compressing water costs to a reasonable range. It must be pointed out that water conservation cannot rely solely on the investment of operators; government departments also need to guide related enterprises by providing and creating relevant policies, technologies, equipment, and other conditions for operators. Simply raising prices is not conducive to the reasonable, effective, and sustainable use of water resources.
If water price increases have become an inevitable measure, they cannot be based solely on the losses of water supply enterprises. Because water supply enterprises have a monopoly nature, their cost calculation methods and amounts lack credibility unless audited and evaluated by a third party entrusted by consumers, water-using enterprises, and government authorities. Even so, water supply enterprises should not be purely profit-seeking; their public service function is more important. How the government adjusts this function guides water price adjustments. Enterprises cannot immediately absorb cost increases, so water price adjustments should not be done all at once but allow enterprises some buffer time. For example, material incentives should be given to enterprises that actively respond and achieve effective results within the policy timeframe to guide others to follow, forming consensus and a harmonious transition. This is similar to Beijing's traffic adjustment measures with license plate restrictions, which went from initial non-compliance to now conscious adherence, even when violations are punished without much explanation.

Yang Ze (Secretary-General, Sichuan Laundry and Dyeing Industry Association):
1. The increase in water prices is a major issue related to the national economy, people's livelihood, and building a harmonious society. Party and government departments should take a holistic view, stand at the height of protecting and caring for the vital interests of the people, conduct serious research, scientific analysis, and act cautiously. For a long time, the allocation and price regulation of resources such as water, electricity, and gas in China have been controlled by governments at all levels, with prices set or guided by the government. The marketization degree is not high, and the price mechanism cannot regulate resource production and consumption behavior according to market laws, lacking incentives and constraints for investors, operators, and consumers, leading to a stark contrast between resource exploitation and scarcity.
The pricing of energy resources has long adopted low prices, free use, and government subsidies, causing serious damage to China's resources and environment. Using reasonable price leverage regulation is beneficial to environmental protection and resource utilization and promotes sustainable economic development.
2. Over the past thirty years of economic reform and rapid development in China, people's living standards have continuously improved, urban and rural construction has accelerated, and the demand for energy consumption has grown rapidly, increasing dependence on resources day by day. The total domestic water consumption in cities and rural areas has continuously increased, and water resources have become a necessity in social life, closely linked to the vital interests of the people and production enterprises.
The adjustment of water resource prices relates to the vital interests of the people and involves the relationship between the party and the masses. It must fully consider the actual situation of the people and protect their vital interests. The actual income of the people must be proportional to water resource consumption and the cost of water resource exploitation and utilization. Government price regulation must be based on careful cost accounting. Reasonable price adjustments will be understood and accepted by the people. Otherwise, it will backfire, not only failing to better utilize and protect water resources but also causing dissatisfaction and distrust among the people toward the government, distancing the party and government from the people and leading to a crisis of trust in the party and government.
3. The laundry and dyeing industry is a livelihood service industry that has developed rapidly in China since the reform and opening up. It consumes a large amount of energy such as water, electricity, and gas, and is highly dependent on them. With the development of the tourism industry, laundry departments in hotels, laundry rooms in schools and hospitals, professional laundries, and factories all require a large amount of clean water resources. The rise in water prices will inevitably increase production costs for these industries and enterprises. Disorderly increases in water prices often force enterprises to transfer costs onto the general public and consumers, ultimately harming the interests of the people.
In summary, I believe that the government and relevant departments using prices to balance resource development and utilization can only be an incomplete temporary measure and means. The most critical thing is to accelerate economic development, reasonably allocate and control the development and utilization of water resources, increase forest coverage, and protect the ecological environment. Citizens should be educated to enhance energy-saving awareness, develop and increase energy-saving products, formulate energy-saving and environmental protection measures, and introduce energy-saving and environmental protection incentive policies. Water resources should be used reasonably, with rewards for saving and penalties for waste.
In the laundry and dyeing industry, environmentally friendly and energy-saving washing machinery and equipment can be encouraged and enforced, with high-pollution and high-energy-consuming equipment being forcibly eliminated; energy-saving circulating water tanks and fully enclosed refrigeration equipment should be installed on dry cleaning machines; water washing enterprises should increase sewage treatment facilities and wastewater recycling equipment.