China Releases First Major Policy on Green Trade Expansion

China has taken a decisive step in advancing its green trade agenda by releasing its first major policy document in this domain. After receiving approval from the State Council, the Ministry of Commerce issued the Implementation Opinions on Expanding Green Trade. The announcement, delivered at a press briefing on 31 October, formally signals China’s intention to integrate trade development, national industrial upgrading, and the country’s “dual-carbon” goals into a unified strategic framework.

Strategic Context and Policy Objectives

The policy emerges against a backdrop of global momentum toward climate action and low-carbon economic transformation. As stated by Deputy Minister and chief trade negotiator Li Chenggang, the objective of these Implementation Opinions is “to promote trade optimization and upgrading, assist in achieving the dual-carbon targets, and better serve global climate governance”. The new document aims to bridge critical capacity gaps in the green and low-carbon trade arena, namely enterprise capabilities, logistics sector decarbonization, and support system deficiencies.

Key Direction 1: Strengthening Enterprise Green Capability

At the heart of the policy is a focus on enhancing the green and low-carbon development capability of Chinese trading enterprises. The document encourages firms to adopt green design and production methods, make greater use of renewable energy, renew equipment, utilize recycled materials, and reduce carbon emissions associated with export products. Enterprises are also urged to contribute to the construction of public service platforms for green trade. This reflects a shift from treating green trade as a niche activity toward seeing it as a mainstream driver of export competitiveness.

Key Direction 2: Expanding Green Products and Low-Carbon Technologies in Trade

The policy emphasizes increasing the import and export of green and low-carbon-related goods and technologies. Among the measures highlighted are development of sustainable fuel trade (such as green hydrogen), improvement of standards and management for recycled resources imports, and promotion of green development in overseas economic and trade cooperation zones. China’s export performance in green sectors has already achieved strong results—wind turbines and photovoltaic products are now exported at scale to over 200 countries and regions, enabling global reductions in renewable energy costs and demonstrating China’s growing role in the green technology supply chain.

Key Direction 3: Creating a Supportive International Environment for Green Trade

Beyond domestic reforms, the policy recognizes the importance of creating a favorable external environment for Chinese green trade. This includes actively participating in negotiations on green trade issues in high-standard economic and trade agreements, promoting more inclusive and equitable international green trade rules, and supporting mutual recognition of standards. The regulatory environment therefore is not limited to domestic industrial policy but aligns with China’s evolving role in global trade governance.

Key Direction 4: Building a Robust Support and Guarantee System

To underpin the green trade agenda, the document lays out measures to establish a robust support and guarantee system. For example, the construction of product carbon-footprint databases, acceleration of standard-setting in green trade, and strengthening of carbon-pricing mechanisms are all identified as priorities. Financial policy will also play a role: the People’s Bank of China has already included green trade in its 2025 Green Finance Support Project Catalogue, and regulatory measures around standard conversion and international standard adoption are being accelerated to support trade-related technological and methodological alignment.

Implications for Enterprises and Trade Participants

For Chinese exporters and foreign trade companies, this policy raises both opportunities and imperatives. Firms operating in green product segments, renewable energy equipment, recycling, low-carbon logistics and related services stand to benefit from clearer policy support and growing demand. However, success will increasingly depend on firms’ capacity to integrate green design, lifecycle thinking, and low-carbon operations into their business models. Enterprises must assess their green readiness, invest in design, process transformation and certification, and align with new standard and regulatory expectations.

Broader Significance and Outlook

The issuance of this policy marks a strategic pivot: green trade is being elevated from a peripheral activity to a core component of China’s foreign trade strategy and industrial transformation agenda. By linking trade optimization, industrial upgrading and carbon-emission goals, China is repositioning its export model toward higher value-added, more sustainable activities. Over time, the policy may contribute to more resilient supply chains, enhanced global competitiveness of Chinese green-technology exporters, and stronger alignment of trade flows with climate-related industrial dynamics.

Conclusion

The Implementation Opinions on Expanding Green Trade signal a new era for China’s trade policy, one where sustainability, innovation and international cooperation converge. For stakeholders across the value chain, the message is clear: green trade is no longer optional but a strategic priority. Enterprises that embrace this shift early and build robust low-carbon capabilities may gain a competitive advantage in both domestic and global markets.