The situation in terms of industrial use of water and pollution is equally unsatisfactory. We estimate that Chinese industries use four to 10 times more water, depending on the types of products manufactured, compared with their counterparts in developed countries.

A Ministry of Environmental Protection survey shows nearly one-fifth of China's agricultural land is polluted because of continuous irrigation with inadequately treated wastewater, which is the result of poor industrial wastewater management and agricultural practices. According to the survey, conducted over a period of seven years, the three main pollutants are cadmium, nickel and arsenic and most of the affected farmlands are along the eastern coast where much of the country's heavy industries are located. A major reason for water contamination is that neither municipalities nor industries treat, or have treated, their wastewater properly and consistently.

Even though European countries, the US, Canada and Singapore have less polluted water sources, they use advanced treatment technologies such as ozonation, reverse osmosis and activated carbon to treat their water. But despite its water being significantly more polluted, China continues to use old technologies, which cannot remove many of the pollutants, to treat its water. Until the end of 2009, 98 percent of water treatment plants in China were using conventional technologies.

Not surprisingly, the economic, social and health costs of water pollution in China are now very high. The World Bank estimates that they add up to 2.1 percent of its GDP. But we believe the real costs could be twice that.

Water quantity and quality management in China is now at a crossroads. The country has the knowledge, technology, expertise and resources to solve its water quality management problems. Whether it can do so depends on many factors, including political will and social pressure.

Given the magnitude and complexity of China's water pollution problem, it basically has two options, China has no option but to take water management measures to ensure sustainable economic growth as well as better quality life for its people.

The Chinese leadership is well aware of this dilemma. As premier Li Keqiang said recently: "It is no good to be poor in a beautiful environment, nor is it any good to be well off and leave with the consequences of environmental degradation."

Cecilia Tortajada is president of the Third World Centre for Water Management, Mexico. Asit K. Biswas is distinguished visiting professor, Lee Kuan Yew School of Public Policy, Singapore, and co-founder of the Third World Centre for Water Management, Mexico.