Biobutanol, which turns agricultural waste products into high-value chemicals and biofuels, is a substitute for petroleum-based n-butanol and an important chemical used in the production of paint, adhesives, inks and plastics.

China's consumption of n-butanol in 2012 was around 35 percent of global demand, according to the research consultancy Markets and Markets. It is expected to grow to 40 percent of the global market by 2020, according to Green Biologics.

With the exception of a small plant in Brazil, China is the only country that has existing plants for the relatively new technology of biobutanol.

Two years ago, Green Biologics signed a deal with Songyuan Laihe Chemical Co Ltd (now Laihe Rockley Biochemical Ltd), to help it produce biobutanol from cellulose feedstock. The technology has already been fully tested and is expected to be commercialized later this year or early next year, Davies says.

He says Green Biologics has also signed partnership agreements with Shijiazhuang Lianhua Chemicals Co Ltd and Guangxi Guiping Jinyuan Alcohol Industrial Co Ltd, and commercial cooperation will begin once the Laihe project demonstrates success.

Another company benefiting from China's R&D environment is the architectural company ZEDfactory Ltd, which has developed a solar panel, jointly with the Chinese company Himin. The product can be integrated into glazing and replace roofs on buildings, and therefore reduce costs.

Bill Dunster, founder and principal of ZEDfactory, says the same concept was tested out at Beddington Zero Energy Development (BedZED), an environmentally friendly housing development built near London in 2000-2002, which ZEDfactory designed.

"When we implemented the concept at BedZED it was very expensive. But with Himin we were able to bring the cost down through economies of scale. It means we can now encourage this innovative solar panel to be used on a much wider scale both in China and globally," Dunster says.

Another product Dunster has also developed an e-bike called the ZEDbike in cooperation with the Chinese bicycle company Shanghai Forever Co Ltd.

Powered by solar energy, the e-bike travels at much faster speeds compared to conventional bikes, which means it has the potential to replace cars for urban travel, and hence reduce emissions, Dunster says.

He says currently about six bikes have been made for trial purposes. "A current challenge is that the bikes travel at a speed that exceeds China's regulations, so we will work on lowering the speed for the Chinese market," Dunster says.

"China's urbanization is providing us with great opportunities for R&D for environmentally friendly technologies and solutions, and China's scale can help these technologies reduce costs, making them easier to be adapted globally," Dunster says.

The benefits of scale which ZEDfactory found in China's urbanizing landscape is also felt by the British company Stramit, which specializes in manufacturing strawboard from wheat or rice by a patented process of heat and pressure. The strawboard can then be used as ceilings, walls, doors and other components in building construction.

Ben Pape, founding partner of London-based consultants Pall Mall Principals, which advises Stramit in China, says Stramit's technology will help China protect its environment by reducing the harmful emissions from burning straw in rural areas. "There is a huge amount of straw burnt in rural China. If we can make use of this straw, it not only removes the pollutants, but also provides income for farmers," he says.