China’s impact on global investment and trade becomes ever more important as its economy continues to grow. The "Going out" strategy encourages Chinese enterprises to expand and develop their overseas businesses, which has promoted local economic development and employment in host countries. In the meanwhile, some projects brought negative impact on local community and eco-system, due to the lack of understanding of local politics, regulations, and culture; or the incompatibility between Chinese management practices and host country culture and values. As a result, not only the projects are delayed, but also the companies’ finances and reputation suffer.
As a major contributor of overseas investment, China has the responsibility to reflect upon its development model; to reduce its global footprint; and to actively participate and promote transformation towards a greener economy. The process of “Going Out” should also be the process of “Bringing In”. It is hoped that as Chinese companies learn to deal with environmental and social issues overseas.They would adopt international standards and improve their own management capabilities. They may also apply these learnings towards their domestic business and speed China’s own transformation towards low-carbon economy.
Greenovation Hub is a local Chinese NGO focusing on environment and development with international outlook. We will deliver this periodic “Observation” on China’s oversea investment and its global ecological impact to promote awareness and understanding. The “Observation” will present multiple views and perspectives, to identify real problems and to solve real problems so as to promote China's "going out" in a more responsible and more sustainable way.
We’re looking forward to sharing and discussing with you.
Climate and Finance Policy Center, GreenovationHub
