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Research

Conducting sectoral and commodity chain analysis

China has entered an unprecedented stage of economic growth. Home to one-fifth of the world’s population, China's domestic markets and production base are set to establish China as the world's single largest economy by 2030.

The Global Markets Project, undertaken by the International Institute for Sustainable Development (IISD), was carried out in cooperation with the Chinese Ministry of Commerce (MOFCOM) and supported by the Swiss State Secretariat for Economic Affairs (SECO).

It focuses on global supply chains in the forestry, cotton and e-product sectors and identifies practical strategies for ensuring the long-term sustainability of China's growth process.

Although the nature and impact of China's role varies in the different sectors investigated by the global markets, several broad strategies stand out as potential components for a sustainable trade strategy for China:

1. National capacity building

2. Leveraging sustainable markets

3. International cooperation

• Sustainable Development and China: Recommendations for the Forestry, Cotton and E-products Sectors
  English (PDF - 2.5 mb) - Chinese (PDF - 7 mb)
  This report summarizes the results of the first phase of the Global Markets Project, provides an overview of the social and environmental impacts associated with the Chinese forestry, cotton and e-product supply chains, as well as a corresponding set of recommendations to the Chinese government as it moves towards its objective of attaining HeXieSheHui ("harmonious society").

  The report's conclusions suggest a series of concrete actions available to the Chinese government as it seeks to leverage the forces of the market as a vehicle for stimulating sustainable production, consumption and trade.

• Global Forest Product Chains
  English (PDF - 2.8 mb) - Chinese (PDF - 2 mb)
  The environmental sensitivity of the forest product chain is well known. Its importance has been accentuated by measures adopted in China to protect domestic forests. As a consequence, China is importing increasing amounts of logs and lumber from temperate and tropical forests alike.

  Summary recommendations:

  • Build capacity for sustainable forest management by providing targeted supplying countries with financial aid to build forest governance and management capacity;

  • Build markets for sustainable forest products by improving market transparency and encouraging the growth of markets for sustainably produced forest products;

  • Be a proactive participant in international initiatives.

• Global Cotton and Textile Product Chains
  English (PDF - 1.2 mb) - Chinese (PDF - 685 kb)
  China is the leading exporter of cotton textiles, a position that was reinforced with the 2005 elimination of most tariffs and quotas on textiles. China produces cotton, but also increasingly imports large amounts of it to meet its domestic and export needs.

  Summary recommendations:

  • Develop a national market growth strategy for sustainable cotton production;

  • Develop national strategy for environmentally sound cotton production;

  • Promote international cooperation for sustainable production and trade, particularly in the development of Sino-African cotton trade.

• Sustainable Electronics and Electrical Equipment for China
  English (PDF - 1.5 mb) - Chinese (PDF - 1.3 mb)
  China has become one of most significant countries in the production, consumption and export of electrical and electronic products. Electronic products accounted for more than 26 per cent of China's total exports in 2006.

  Summary recommendations:

  • Develop a national sustainable e-product growth strategy aimed at stimulating "green" economic growth in the e-product sector, through investment and innovation for sustainable e-product design and production practices;

  • Develop a national e-waste strategy for the responsible collection and treatment of e-waste, based on increased transparency and coherence across existing e-waste management legislation and programs, as well as the drafting of new legislation to fill existing e-waste management gaps;

  • Join an international action plan for sustainable e-waste management for the responsible trade and disposal of e-waste.

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