From Rule "Taker" to "Shaper": China's Green Trade Transformation in Progress

Deep News
2025/12/23

Green transformation has become a pivotal trend and growth engine in the global economy. At the recent Central Economic Work Conference, China emphasized the need to "actively develop green trade," aligning with the country’s first dedicated green trade policy document—the "Implementation Opinions on Expanding Green Trade" issued by the Ministry of Commerce.

Experts note that China is transitioning from a global rule "taker" to a "shaper," with green trade emerging as a core driver for building a strong trading nation and leading global climate governance.

Hu Min, Director of the Green Innovation Development Institute (iGDP), described the policy as "long-awaited," highlighting its role in China’s proactive engagement in global green trade rules and governance. Zhang Wei, Deputy Secretary-General of the Globalization Think Tank (CCG), called it a "programmatic document and action declaration" for China’s green trade development, signaling a shift toward integrating green growth as an intrinsic value.

**Navigating Green Barriers** The global green trade landscape faces dual challenges: fragmented rules and rising green protectionism. For instance, the EU’s Carbon Border Adjustment Mechanism (CBAM), now in its transitional phase, has expanded to cover 180 downstream products, including machinery and electronics, with full enforcement set for 2026.

China, the world’s largest green trade economy (16.1% of global trade volume), is addressing these challenges through a dual strategy: - **Domestically**, building a robust "carbon footprint database" to standardize emissions accounting and enhance data credibility. - **Internationally**, advocating for unified standards via multilateral platforms like the WTO while prioritizing green standard recognition in regional trade agreements, particularly with Belt and Road partners.

**Turning Carbon Costs into Competitive Edge** The new policy reframes carbon costs as opportunities, urging exporters to leverage carbon pricing mechanisms for global market expansion. Hu Min stressed that integrating trade policies with carbon pricing, green electricity, and finance will create a cohesive market environment.

Global trends validate this shift. LinkedIn data reveals that 86% of manufacturing buyers view green and digital capabilities as core supplier competencies, with ESG scrutiny now a procurement necessity. Chinese brands like "Jasmine Milk Tea" are embedding sustainability into their global strategies, prioritizing eco-friendly partners and operations.

**Challenges and Roadmap** Despite progress, pitfalls remain, such as treating ESG as a marketing tool rather than an operational imperative. Cai Xiaodan of LinkedIn advises firms to build verifiable data systems and communicate green value through tangible scenarios.

By 2030, China aims to evolve from a product exporter to a solutions provider (e.g., zero-carbon industrial parks), a rule co-creator, and a global enabler of green transitions, particularly for developing nations. Hu Min anticipates China’s green trade policies will significantly influence global low-carbon transformation, shaping standards for renewables and EVs.

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