Since 2003, the coal price at Qinhuangdao Port has surged 150 percent while the on-grid electricity tariffs climbed only 32 percent, according to data from the China Electricity Council.

China has deregulated the price of thermal coal to float in line with market demand. But the on-grid power tariffs have been mostly static, said Mao Rifeng, General Manager of Central China Grid Co. Ltd.

A hike in the electricity prices is less likely in the near future given simmering inflationary pressures, said Lu Qizhou, General Manager of China Power.

"Our company is expected to break even this year as profitable hydropower businesses cushioned much of the blow," he said.

Green Investments

China is leading the globe in renewable energy investments as the economy seeks a more sustainable source of growth, according to a recent report by the international accounting firm Ernst & Young.

China reached 42 gigawatts of wind power capacity in 2010, surging 64 percent from the previous year. However, Chinese companies are dealing with falling stocks, inflationary pressures, weak research and development capabilities, and limited grid capacity that may not be able to continue supporting the country's rapid growth in both wind and solar power, said the report.

Globally, however, the toxic legacy of the financial crisis continues to cast a shadow over the world renewable energy market, although new investment in clean energy climbed 30 percent year on year to $243 billion in 2010. Many countries sought to tackle budget deficits by trimming renewable energy incentives. For example, feed-in tariff incentives for solar energy were cut in Spain, Germany and Italy, while France imposed a three-month ban on new projects.

"The global transformation to a resource-efficient and low-carbon economy is a long journey. It is expected to have challenges along the way on local or regional levels," said Gil Forer, Ernst & Young's Global Cleantech Leader. "But the global drivers of this transformation, including imbalance of supply and demand of natural resources, energy security and energy prices, are solid."

Groupon in China

The world's largest coupon website Groupon.com is making China forays, hoping to capitalize on the world's most populous Internet market.

The U.S. behemoth has joined hands with Tencent Holdings Ltd. and the private equity fund Yunfeng Capital to build the Gaopeng.com. The new site is now accepting e-mail registrations from Chinese consumers who will be notified on daily deals from local merchants, such as restaurants, gyms and home electronics retailers. The service will initially cover Shanghai and Beijing before expanding to other major Chinese cities.

"The collaboration combines Groupon's global group-buying experience with Tencent's in-depth knowledge of Chinese online communities," said the Chicago-based company.

As it breaks new ground in China, Groupon sets its sights on the thriving Internet market. China had 457 million Internet users by the end of 2010, more than any other country. The Tuan800.com, a group-buying navigation website, estimated value of the group-buying market at 16 billion yuan ($2.46 billion) this year, nearly 10 times that of 2010.

However, analysts cast doubts over how successful Groupon can be in China given intensifying competition. Its aggressive expansion into China also angered local rivals. Groupon has been accused of poaching staff, and competitors have in response formed an alliance and vowed that employees who leave for Groupon will not be welcomed back.

"The inexperience with local consumer markets will be a stumbling block for Groupon," said Chen Shou, an analyst at the research company Analysys International.

Zhangyi, President of the Iimedia Research Co. Ltd., believed its tie-up with Tencent will provide a solid customer bass. "But it remains to be seen how the venture works given cultural differences between the two giants," he said.

Focus on Boom

China's digital advertiser Focus Media Holding Ltd. reaped juicy returns in 2010, drawing strength from an improving advertising market in China.

The Shanghai-based company raked in net profit of $177.8 million last year, compared with $88.8 million in 2009. The NASDAQ-listed Focus Media is China's largest publicly traded advertising company, running a handful of advertising networks in more than 90 cities across the country.

The performance was due to stronger advertising revenues from LCD (liquid crystal display) monitors and in-store and poster frame businesses. The company received a serious blow from the economic slowdown two years ago, which prompted its core corporate customers to cut expenses on advertising. It suffered five consecutive quarters of losses before returning to the black in the quarter ending in June 2010.

"The strength and effectiveness of our core business is becoming increasingly recognized by advertisers," said Jason Jiang, Chairman and CEO of Focus Media, "Meanwhile, the aggressive ad price hikes of traditional TV broadcasters have presented exciting growth opportunities to us.

"In 2011, we will continue enabling interactivity of our core media resources and expand our presence in the third and fourth-tier cities."