Can red China become green? Yes, we can, was my answer during a panel discussion on "Greening Business in Southern China"—a forum held by the China Environment Forum at the Woodrow Wilson Center on June 19 in Washington, D.C.

Despite increasing concerns and attention focused on China’s mounting environmental challenges, all of us on the panel—including You-Zhi Tang of Canadian Cleantech Fund and IBM's Jay Dietrich—acknowledged that the situation is improving rapidly.

In China, trends and fashions come in waves, and today, the new wave is green business. People are seeing great opportunities in greening business in China. According to Tang, there are “too many temptations and opportunities in China,” and it “will be the largest market for clean technology and products in the next five to ten years.”

To cultivate the Chinese market, clean tech companies in the United States and other developed countries need to move fast to keep pace with China's desire for green business. Even though the commercialization process of clean tech can be lengthy, companies must act now before the opportunities slip away. Notably, as top Chinese government officials drive China's energy-saving and emission reductions efforts, companies are being cited on government blacklists for failing to implement greener operations.

However, with that said, there has been too much focus on preventing pollution, and not enough attention targeting efficiency, productivity, and profitability improvements. China needs to develop best practices to set clear targets, standards, and checklists; establish a dedicated energy team; and agree on metrics to measure and evaluate what works and what doesn’t work. As Jay Dietrich who is program manager for IBM’s climate stewardship said, “The key for success in driving behavioral change is that you have to get staff responsible for energy conservation.”

Multinational corporations can make a huge difference if they take the lead in greening business throughout their supply chains. BSR, for example, is working with Wal-Mart to evaluate, manage, and report on energy efficiency in their Chinese supply chains.

Other visionary business leaders in China are also quietly leading the way in greening business. Companies including Broad Air Conditioning, BDY, Haier Global, Himin Group, and Suntech Power Holdings, together with GE, Wal-Mart, 3M, Dupont, and Shell, all received the Green Business Award at the recent Global Green Business Summit sponsored by BusinessWeek in Tianjin, China.

All of these companies successfully combine leadership, economic viability, innovation, execution, and corporate culture, and demonstrate that with China's strong will, red China is not far from becoming green.