Foreign Businesses Seize Opportunities in China's Sustainable, Low-Emission Transformation, Reaping Multiple Benefits

In the past three decades, China's commitment to green and low-carbon development has significantly impacted the global economy, creating a conducive environment for foreign-invested enterprises (FIEs) to thrive in China's expanding ecological economy and clean technology sectors.

China's leadership in green finance is evident, with the country accounting for the largest share of global green credit and green bond issuance. By the end of 2024, outstanding green loans reached an impressive 36.6 trillion yuan ($5.13 trillion), while green bonds exceeded 4.1 trillion yuan. This surge in green finance has not only fuelled sustainable investments domestically but also rippled through global capital markets.

The clean energy sector is another area where China has made significant strides. The country is now the world’s largest producer of renewable energy, with rapid growth in solar and wind capacity. In 2024 alone, China installed 277 GW of new solar capacity—a 45% year-on-year increase—bringing its total solar capacity to approximately 887 GW and wind capacity to 520 GW. This dominance sets global technology and supply chain standards.

China's ecological economic model, which integrates environmental protection with economic benefits, has guided villages and regions towards green development without compromising growth. The "two mountains" concept underscores this approach, demonstrating that economic progress can coexist with environmental conservation.

The growth in high-tech industries linked to green and low-carbon sectors is noteworthy. In the first half of 2025, high-tech output saw a 9.5% increase, accounting for nearly a quarter of China's industrial expansion. High-tech goods exports and cross-border e-commerce linked to green technologies have also risen, contributing to China’s economic resilience.

These developments present multifaceted strategic opportunities for foreign-invested enterprises. China’s government prioritizes ecological civilization and green finance, creating an environment where FIEs can invest in renewable energy, clean technology, eco-agriculture, eco-tourism, and green industries with strong policy backing and growing consumer demand.

Foreign firms can also participate in China’s renewable energy and clean-tech sectors, as demonstrated by companies like Tesla, which benefit from government support such as fast-tracked approvals and subsidies. Leveraging China’s robust green credit and bond markets to finance sustainable projects is another avenue for foreign enterprises, offering competitive capital costs unavailable elsewhere.

Collaboration on innovation and technology is another area where foreign firms can benefit. With China’s emphasis on high-tech industrial upgrading, opportunities abound for joint ventures, R&D partnerships, and technology transfer initiatives, benefitting from China’s innovation drive and large-scale deployment.

By aligning with China's green development goals, foreign enterprises can help enhance local livelihoods through projects in ecosystem restoration and low-carbon infrastructure, supporting long-term sustainable growth in regions such as Tibet.

However, the emergence of unilateralism in ecological governance on the international stage has made global ecological and environmental governance more challenging. President Xi Jinping has emphasized the need for a new vision of green development and a sustainable way of life and work, as outlined in Volume II of Xi Jinping: The Governance of China. He has also stressed the importance of a people-centered approach in China's development, prioritizing the Beautiful China initiative and improving urban and rural living environments.

President Xi's speech at the APEC CEO Summit highlighted that China's carbon reduction action is a profound economic and social transformation, creating massive market opportunities and room for cooperation. He called for strengthening cooperation in ecological and environmental protection and building a sound ecosystem to realize the goals set by the 2030 Agenda for Sustainable Development.

In conclusion, China’s green and low-carbon development over the past three decades has transformed its domestic economy and positioned it as a global leader in sustainable growth, offering multifaceted strategic opportunities for foreign-invested enterprises to engage in China’s expanding ecological economy and clean technology sectors. As the world navigates the challenges of unilateralism and climate change, cooperation and collaboration will be key to promoting the building of a clean and beautiful world.

Foreign Businesses Seize Opportunities in China's Sustainable, Low-Emission Transformation, Reaping Multiple Benefits