Status Quo: The Third Plenum in July highlighted green development as a priority again, for example carbon reduction, pollution reduction, improvement of environmental governance systems and low-carbon development. Since then, the State Council released major documents such as shifting from controlling energy consumption to controlling carbon emission and accelerating the comprehensive green transformation of economic and social development. 

Pulse Check: The long-standing commitment to sustainable practices has become a competitive advantage for many German companies. To maintain this asset, it might be necessary for companies to apply new standards, for example related to ESG factors, adapt to green manufacturing or to digitalize processes. Meanwhile, companies might face challenges in their green ambitions, such as obtaining access to green energy. 

Source: AHK Greater China Policy Barometer vol.3/2024