Meeting China’s Global Resource Needs

The report argues that sustainability issues—such as pollution, biodiversity loss, and social conflict—in supplier countries create strategic risks for China's security of supply. It introduces a methodology to identify 'hot spots' by analyzing demand-side vulnerability and supply-side hazards. Through pilot studies on copper and palm oil, the report demonstrates that while China is highly vulnerable to supply disruptions in these sectors, it lacks a coordinated national strategy to manage these risks. The authors recommend that the Chinese government build the capacity of its embassies, engage more deeply with international sustainability standards, explore fiscal incentives for sustainable sourcing, and integrate supply chain sustainability into green public procurement and national planning.

• Sustainability issues in inbound supply chains, such as 'land grabbing,' 'conflict minerals' and 'the natural resource curse,' act as strategic risks for China by affecting the accessibility, affordability, and acceptability of resources.
• There is a significant gap in China's strategic management of supply chain risks, as government ministries and companies currently engage with sustainability standards in a 'limited, cautious and tactical way' without a cohesive national strategy.
• China's copper supply is characterized by very high vulnerability and economic importance; the country is 68 per cent dependent on imports to meet domestic manufacturing needs, and reserves are expected to be depleted by 2024.
• Copper production poses high sustainability risks, particularly regarding energy efficiency, greenhouse gas emissions, labour and human rights, and maintenance and safety, which can lead to social unrest or government action in producer countries.
• China's palm oil supply is extremely vulnerable due to high import dependence (98 per cent) and geographic concentration, with 96 per cent of imports originating from Malaysia, Indonesia, or India.
• The palm oil sector faces critical sustainability risks related to deforestation and biodiversity loss, with estimates that 30 per cent of oil palm expansion in Malaysia and Indonesia between 2005 and 2010 occurred at the expense of natural forests.
• The report recommends that the Ministry of Commerce (MOFCOM) build the capacity of the Economic and Commercial Affairs Sections of its embassies and consulates to help Chinese companies manage social and environmental impacts abroad.
• The Chinese government is encouraged to accelerate engagement with international voluntary sustainability standards to professionalize risk management and solve collective action problems in global supply chains.
• The report suggests integrating supply chain sustainability into green public procurement and exploring fiscal measures to incentivize the development of sustainable sourcing practices.
• The National Development and Reform Commission (NDRC) is identified as the appropriate body to integrate supply chain sustainability into China's national planning and its vision for an 'ecological civilization.'

APA

Zadek, S., Forstater, M., Cheng, H., Potts, J., & Huppé, G. A. (2014). Meeting China’s Global Resource Needs. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/china_supply_synthesis_report.pdf

Chicago

Zadek, Simon, Maya Forstater, Han Cheng, Jason Potts, and Gabriel A. Huppé. Meeting China’s Global Resource Needs. International Institute for Sustainable Development, 2014. https://www.iisd.org/system/files/publications/china_supply_synthesis_report.pdf.

Wikipedia

{{cite report |last1=Zadek |first1=Simon |last2=Forstater |first2=Maya |last3=Cheng |first3=Han |last4=Potts |first4=Jason |last5=Huppé |first5=Gabriel A. |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_supply_synthesis_report.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{zadek2014meeting, author = {Zadek, Simon and Forstater, Maya and Cheng, Han and Potts, Jason and Huppé, Gabriel A.}, 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_supply_synthesis_report.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }