China to accelerate shift to a greener economy

The Chinese government has unveiled a series of guidelines for accelerating the country’s transition to a greener, more sustainable economy, the Xinhua News Agency has reported.

It said the extensive guidelines “will further cement China’s leading role in the green transition, as well as indicate an unwavering determination to fulfil the nation’s carbon reduction commitment”.

The 33-point document issued by the Central Committee of the Communist Party of China and the State Council, the country’s cabinet, outlined key targets for 2030 related to China’s green transition.

The state news agency reported that, by 2030, key areas in the economic and social sectors will see notable progress in the green transition. “By 2035, a green, low-carbon and circular economy will largely be established, with carbon emissions peaking and then gradually declining, while economic and social development will fully adopt a green path, according to the guideline,” it said.

The document also predicts that scale of the energy-saving and environmental protection industry will reach about 15 trillion yuan ($2 trillion) by promoting the rapid development of green and low-carbon industries and business models.

It said: “By 2030, the target is for non-fossil fuels (wind, solar, hydropower, offshore wind and coastal nuclear power) to constitute 25 percent of the total energy mix. To achieve this target, the guideline emphasizes the need for the accelerated development of these energy sources, tailored to local conditions.

“These objectives also align with the Chinese central government’s recent resolution to advance a green, low-carbon and circular economy through comprehensive policy support, including fiscal, tax, financial, investment and pricing measures.”

Ma Jun, director of the Beijing-based Institute of Public and Environmental Affairs, commented: “China is among the countries experiencing the fastest growth in renewable energy, thanks to its extensive efforts in installing wind turbines, hydropower systems and solar panels, and the expansion of new-energy vehicles”

However, Ma added that China remains heavily reliant on coal and faces both internal and external challenges. “At this critical juncture, the new guidelines with clear measures are crucial for the nation to achieve its carbon emissions targets,” he said.

Hu Qimu, deputy secretary-general of the Digital-Real Economies Integration Forum 50, said that the new guidelines are crucial for both the nation’s green transition and supporting China’s real economy, which is struggling to reduce carbon emissions.

The document also highlighted three key actions: adopting a comprehensive conservation strategy; encouraging green consumption; and using technological innovation.

 

China creating ‘vibrant market for foreign companies’

China’s economic reforms and pace of innovation will create a more vibrant market for foreign companies to grow in the country, according to a leading business executive.

Tracey Massey, chief operating officer of consumer information company NielsenIQ, said that China is one of the company’s most important strategic markets globally.

“China’s commitment to high-quality development will provide more opportunities for the companies in the country. The Chinese path to modernization means a higher level of openness, more competitive innovation, a more dynamic market and more sustainable development,” Massey said.

“As the economy grows and reforms take hold, consumer behaviour will continue to evolve. Meanwhile, economic reforms will also create a more vibrant market for consumer goods and services.”

She added: “The country’s advancements in e-commerce and digital innovation are not only benefiting local markets, but also providing valuable insights for global clients, as we take the insights from China to other parts of the world.”

The latest data from the General Administration of Customs shows that the trade volume of China’s cross-border e-commerce reached 1.22 trillion yuan ($170 billion) in the first half of 2024, up 10.5% year-on-year.

NielsenIQ started to provide China’s e-commerce insight to its clients as early as 2014, and recently doubled its capability to analyse China’s offline fast-moving consumer goods, she said.

“We believe it will bring us more opportunities for investment and cooperation as well as growth potential. We will remain dedicated to a long-term commitment to the Chinese market,” she added.