Meeting China’s Global Resource Needs

The report introduces the IISD Supply Risk Tool, a framework designed to identify 'hot spots' where social and environmental hazards in foreign supply chains threaten the security of supply for Chinese enterprises and the national economy. It defines supply risk as a combination of demand-side factors (economic importance and vulnerability) and supply-side hazards (country environment and producer sustainability). The methodology uses a scoring system (0-3) to calculate hazard loss exposure and overall supply risk, which was piloted using copper and palm oil supply chains. The authors argue that China lacks a central government mandate to manage its international import footprint and recommend policy steps including strengthening embassy capabilities, engaging with international standards, and integrating sustainability into green public procurement.

• The proposed methodology assesses supply risk by combining four primary elements: economic importance and vulnerability on the demand-side, and the supply country environment and sustainability issues on the supply-side.
• Supply risk is categorized into five types: physical risks (resource scarcity), production sustainability risks (ESG performance of producers), generalized sustainability risks (macro events like climate-induced disasters), geopolitical risks (concentration of production in few countries), and economic risks (price volatility and inflation).
• Sustainability risks become material supply chain risks when they damage a Chinese enterprise's brand and reputation or cause physical disruptions, such as mining collapses due to poor safety controls or strikes resulting from poor labour rights.
• The assessment tool uses a scale from 0 to 3 (low, medium, high, very high) to evaluate indicators, allowing for both qualitative and quantitative data to be indexed to determine the overall Supply Risk Level.
• The report identifies a governance gap in China, noting that no single ministry or department possesses an overall vision or mandate to manage the country's international import footprint.
• Five specific policy recommendations are proposed to manage supply chain risks: building the capacity of embassy Economic and Commercial Affairs Sections, accelerating engagement with international standards via MOFCOM and CNIS, exploring fiscal incentives, implementing green public procurement criteria, and updating corporate social responsibility (CSR) guidelines.

APA

Potts, J., Huppé, G. A., Dion, J., Voora, V., & Forstater, M. (2014). Meeting China’s Global Resource Needs. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/china_global_resource_methodology.pdf

Chicago

Potts, Jason, Gabriel A. Huppé, Jason Dion, Vivek Voora, and Maya Forstater. Meeting China’s Global Resource Needs. International Institute for Sustainable Development, 2014. https://www.iisd.org/system/files/publications/china_global_resource_methodology.pdf.

Wikipedia

{{cite report |last1=Potts |first1=Jason |last2=Huppé |first2=Gabriel A. |last3=Dion |first3=Jason |last4=Voora |first4=Vivek |last5=Forstater |first5=Maya |title=Meeting China’s Global Resource Needs |publisher=International Institute for Sustainable Development |date=February 2014 |url=https://www.iisd.org/system/files/publications/china_global_resource_methodology.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{potts2014meeting, author = {Potts, Jason and Huppé, Gabriel A. and Dion, Jason and Voora, Vivek and Forstater, Maya}, title = {{Meeting China’s Global Resource Needs}}, institution = {International Institute for Sustainable Development}, year = {2014}, month = feb, url = {https://www.iisd.org/system/files/publications/china_global_resource_methodology.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }