New Economic Model Breathes Life into Desert Control

According to Chen Yuchuan, general manager of the company, spirulina produced this way is free of lead, arsenic, and silicon. "That's the uniqueness of our products. They are safer, and smell better," he said.

Food safety has increasingly been a major concern among consumers in the country, and the Chinese authorities have been mulling a draft amendment to clean up and integrate the country's food safety standards in order to streamline the market.

Chen told China Daily that their products hit the market in October, earlier than expected. "I believe our products will eventually triumph and be a new catch in the market," he said.

"If spirulina products are successful, it will definitely be a shot in the arm because it is the key link to the whole economic chain in desert control," said Chen, adding that the company is banking on the products to generate more profits that could in turn underpin desert control.

Chen then explained how the new green and low carbon economic model works. The climbing sales of spirulina products will reduce carbon emissions, and encourage more biomass power generation that entails more psammophila to be grown from the sand land, thus equaling increased benefits for local people along with better desert control.

"The social benefits of the new economic model are huge; there's no doubt about that. But in the end, the company has to find a way to make money in order to survive," said He Jiankun, president of the Institute of Low Carbon Economy of Tsinghua University.

The company is expecting a break-even balance sheet next year given the fact that the market is starting to recognize the company and its products, thus cutting the company's deficit to about 10 million yuan this year from 40 million yuan four years ago.

Continuing efforts

"Selling spirulina is not the end; it's just a means to the end," said Li Jinglu, the company's chairman. "The thing is, desert control is a huge undertaking, and it is not within the power of a mere company."

Li said he has spent ten years struggling all along the way until an economic model that is green, low-carbon, circular and sustainable takes shape.

"The model is unique, and viable in desert control. More importantly, it can improve the well-being of local people, and spur local economy," said Jiang Minlin, an official with the State Council, when visiting the Maowusu desert and the factory, a field trip initiated by IEEPA.

Jiang added that it is within reason for the model to win support from the Chinese government and to be extended to other desert areas and provide more benefits.