Fighting climate change is a promising area for engagement between Western companies and China. However, geopolitical strains, the disruption of business relationships by the Covid pandemic, and domestic Chinese policies all make engagement complex. In this article the authors examine the complexities of the current climate-change opportunities in China and present practical strategies for businesses ready to enter the market.
There is a twofold opportunity, they explain. First, China offers a vast market for Western-developed solutions. The Chinese government has set ambitious targets, aiming to achieve carbon neutrality by 2060. That goal creates significant opportunities for firms with cutting-edge technologies. Second, businesses have an opportunity to integrate China’s own advances in climate-related technology.
The authors go on to outline four strategies, all of which involve partnering in some way. They advise companies to make sustainability a global theme, to join or form coalitions to find safe spaces for technological development, to forge partnerships with local companies for market access, and to insource technology.
Fighting climate change is a promising area for engagement between Western companies and China. After all, China is responsible for 27% of global emissions and offers a vast market for green tech.
Geopolitical strains, the disruption of business relationships by the Covid pandemic, and domestic Chinese policies all make engagement complex.
To engage effectively with China, consider forming coalitions for safe technological development, forging local partnerships for market access, and insourcing innovative technology.
In the current geopolitical landscape, marked by escalating tensions between Western nations and China, it’s a challenge to identify potential areas of collaboration between East and West that would yield mutual benefits and foster trust. But fighting climate change is one. Climate change is a problem that affects every nation, and it cannot be solved without China’s involvement because the country contributes 27% of global emissions, according to the World Bank.