What Commercial Policies Can Promote China’s Sustainable Trade Strategy?

This research paper examines how China can align its commercial policies with a 'sustainable trade strategy' consisting of five core objectives: rebalancing the economy, promoting added value, expanding the services sector, promoting Chinese brands and intellectual property, and supporting a sustainable international trade architecture. The authors analyze China's trade evolution since joining the WTO, the limitations of traditional reciprocity-based trade agreements, and the potential for soft-law initiatives and regional cooperation to achieve sustainable development goals.

• China's sustainable trade strategy is defined by five specific objectives: rebalancing the economy away from an unsustainable path, promoting added value over simple sales, prioritizing services over manufacturing, promoting Chinese firms, brands, and intellectual property, and supporting a harmonious, sustainable international trade architecture.
• Traditional reciprocity-based trade agreements may be counterproductive to some sustainability goals; for instance, eliminating tariffs on low-end manufactured goods would increase incentives for low-value-added manufacturing, contradicting the goal of promoting added value.
• The first objective of rebalancing the Chinese economy is best addressed through macroeconomic tools and domestic reforms rather than trade policy, as savings decisions are driven by factors not typically affected by trade agreements.
• To promote higher-value-added goods and services, China should prioritize market access for services and seek greater protection for intellectual property and subsidiaries abroad, while potentially using soft-law initiatives to align regulatory standards with East Asian partners.
• China has significantly liberalized its trade since joining the WTO, reducing average import tariffs from 15.3% in 2001 to 9.8% by the time of the report, and opening service trade markets in 9 of 12 fields.
• China faces rising 'murky' forms of protectionism, including discrimination in government procurement and 'green protectionism,' which extend beyond traditional tariffs to regulatory policies and national standard-setting regimes.
• China has become the world's largest carbon emitter, releasing up to 6 billion tonnes in 2007, which exposes its exporters to potential 'border tax adjustments' imposed by countries with higher national carbon taxes.
• China's regional trade strategy emphasizes 'open regionalism' and includes the China-ASEAN free trade zone, where trade volume reached US$202.55 billion in 2007.
• The authors suggest that in the near-to-medium term, China's sustainable trade strategy is most likely to be advanced through bilateral and regional dialogue-driven measures and soft-law initiatives, complemented by a global climate change accord, rather than through the WTO.

APA

Jian, L., & Evenett, S. J. (2010). What Commercial Policies Can Promote China’s Sustainable Trade Strategy? International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/commercial_policies_china_trade_strategy.pdf

Chicago

Jian, Li, and Simon J. Evenett. What Commercial Policies Can Promote China’s Sustainable Trade Strategy? International Institute for Sustainable Development, 2010. https://www.iisd.org/system/files/publications/commercial_policies_china_trade_strategy.pdf.

Wikipedia

{{cite report |last1=Jian |first1=Li |last2=Evenett |first2=Simon J. |title=What Commercial Policies Can Promote China’s Sustainable Trade Strategy? |publisher=International Institute for Sustainable Development |date=July 2010 |url=https://www.iisd.org/system/files/publications/commercial_policies_china_trade_strategy.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{jian2010what, author = {Jian, Li and Evenett, Simon J.}, title = {{What Commercial Policies Can Promote China’s Sustainable Trade Strategy?}}, institution = {International Institute for Sustainable Development}, year = {2010}, month = jul, url = {https://www.iisd.org/system/files/publications/commercial_policies_china_trade_strategy.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }