New guideline to expand green trade

China will increase the share of green trade in its overall foreign commerce as part of efforts to accelerate its shift toward a sustainable growth model and upgrade industrial chains, government officials said on Friday.

The Ministry of Commerce issued a guideline for expanding green trade on Thursday. The policy document states China will explore new trade models involving remanufactured products and help companies better leverage preferential arrangements under existing free trade agreements to deepen cooperation in green and low-carbon sectors.

Green trade refers to international trade activities that support environmental protection, sustainable growth and the low-carbon transition by promoting the exchange of environmentally friendly goods and services such as renewable energy products, electric vehicles, energy-saving equipment and green technologies, according to information released by the General Administration of Customs.

Speaking at a news conference in Beijing, Li Chenggang, China international trade representative at the Ministry of Commerce, said China will broaden imports and exports of green and low-carbon products and technologies, including developing trade in sustainable fuels such as green hydrogen.

The government will refine standards and management measures for the import of recycled resources, and deepen cooperation with countries and regions participating in the Belt and Road Initiative in the green and low-carbon fields, said Li, who is also vice-minister of commerce.

"China will also enhance policy support and services for foreign-invested enterprises engaged in green trade and sustainable industries," he added.

China has already incorporated provisions on green trade and sustainable growth into its existing free trade agreements.

For example, the country and the Association of Southeast Asian Nations signed the China-ASEAN Free Trade Area 3.0 Upgrade Protocol in Kuala Lumpur, Malaysia, on Tuesday. The upgraded agreement includes a dedicated chapter on the green economy and designates green trade as a priority area for cooperation.

In addition, China's free trade agreements and upgrade negotiations with Switzerland, South Korea and Peru also feature elements related to environmental protection and collaboration in green industries, according to the Ministry of Commerce.

Wang Peng, director of the energy saving and comprehensive utilization department at the Ministry of Industry and Information Technology, said that by promoting green design and advancing green manufacturing, more environmentally friendly products can be developed, accelerating the green transformation of industries and injecting new momentum into the expansion of green trade.

The MIIT will focus on developing green products, such as green home appliances and green building materials, while vigorously fostering sectors such as new energy vehicles and energy-saving and environmental protection equipment, said Wang.

Driven by the country's steady industrial upgrading and surging global demand for technology-intensive green products, China's exports of wind turbines and related components grew by more than 30 percent in the first three quarters of this year. Its exports of photovoltaic products have exceeded 200 billion yuan ($28.13 billion) for four consecutive years, data from the Ministry of Commerce showed.

The ministry said that China's exports of electric vehicles surpassed 2 million units for the first time in 2024 and its shipments of green transportation equipment such as electric locomotives, electric motorcycles and electric bicycles have also maintained robust growth.