Page 196 - 2020 White Paper on the Business Environment in China
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0 White Paper on the Business Environment in China
by 10 percent and 10.7 percent year-on-year is of national importance because it establishes the
respectively, according to the ministry. Investment rules for what kind of industries can be defined as
in expressways, which totaled 191.5 billion yuan, green and thus be grouped within the growing field
grew 12.6 percent year-on-year. The construction of environmentally conscious business sectors in
of waterways saw nearly 11.3 billion yuan in China. This will help grant companies proper status
investment, up 9.3 percent. The first quarter also and spur ecological growth in the long run. The
witnessed an optimized transportation structure, catalog encompasses six sectors, touching on 30
with a growing number of rail and air passengers industries and 211 sub-industries. It is the first of
and an increasing railway and waterway freight its kind specifically focusing on green industries,
volume. The number of railway trips reached some and provides important guidance for developing
850 million, surging 9 percent from 2018, while green finance as well, since finance is closely
trips via air topped 160 million during the period, related to industry. While the 2019 catalog includes
up 9.8 percent year-on-year. However, there were a large number of sub-industries which are not in
about 3.4 billion trips by road, a 5 percent decrease the previous Green Bond Catalog, it also excludes
from 2018. “Convenient, efficient and comfortable a few, most noticeably in the area of industrial
transportation, such as high-speed rail and air energy conservation, energy management centers,
travel have been on the rise, while the number urban and rural infrastructure construction with
of traditional road trips is declining,” Wu said. energy efficiency, passenger railways and waterway
China expand infrastructure investment in 2019, transportation. When it comes to the definition of
including 800 billion yuan in railway construction green, the new catalog also varies with the Green
and 1.8 trillion yuan in road construction and Bond Catalog in a number of cases. For instance,
waterway projects, as well as another 85 billion hydropower can be considered green only if it is a
yuan in airport projects, according to the ministry. key large-scale hydropower project specified in the
Specifically, 200,000 kilometers of roads in rural country’s 13th Five-Year Renewable Energy Plan
areas were under construction, while new rail (2016-20). One of the most important parts of the
lines of some 6,800 kilometers were added, up 45 green finance is green bonds. The NDRC’s catalog
percent from 2018 (Wang, Investment Increases). of green industries could help align two different
bond types that currently exist in the country’s
Infrastructure is more than just transportation. green bond market—the corporate bond and the
According to He Lifeng, head of the National financial bond. To ensure this, professional analysis
Development and Reform Commission, China will of new and old policies is needed with guidance
carry out more efforts to accelerate the construction available for stakeholders, so they can clearly
of an international science and technology center understand what projects are going to be redefined.
in the Guangdong-Hong Kong-Macao Greater Transitional management is also required for the
Bay Area. He said more measures will be taken proper handling of green finance funds and green
to expedite the building of infrastructure in projects, so they might adjust funds with new
Guangdong, Hong Kong and Macao to lay a sound policies while avoiding financial loss in previously
foundation to boost exchange and communication finalized projects (Wang, Spur).
among the regions (Ma, China to Speed).
Meanwhile, the Belt and Road Initiative is
Green Construction getting greener. China spearheads the BRI to
create transcontinental infrastructural and trade
The Chinese National Development and Reform networks across land and sea routes, so as to
Commission along with relevant ministries and deliver development and prosperity to billions of
agencies publishes the Green Industry Catalog that people around the world. More businesses are
establishes the rules for what kind of industries can sewing up plans to invest trillions of dollars to
be defined as environmentally friendly. An annual promote environmentally friendly infrastructure
set of guidelines on green industry are a key building and technology projects in over 130 economies
block in China’s green financial system and help participating in the BRI. And given the BRI’s global
clarify the global green finance mission. The catalog scale, the go-green thrust on development will have
far-reaching impact on the participating economies
196
by 10 percent and 10.7 percent year-on-year is of national importance because it establishes the
respectively, according to the ministry. Investment rules for what kind of industries can be defined as
in expressways, which totaled 191.5 billion yuan, green and thus be grouped within the growing field
grew 12.6 percent year-on-year. The construction of environmentally conscious business sectors in
of waterways saw nearly 11.3 billion yuan in China. This will help grant companies proper status
investment, up 9.3 percent. The first quarter also and spur ecological growth in the long run. The
witnessed an optimized transportation structure, catalog encompasses six sectors, touching on 30
with a growing number of rail and air passengers industries and 211 sub-industries. It is the first of
and an increasing railway and waterway freight its kind specifically focusing on green industries,
volume. The number of railway trips reached some and provides important guidance for developing
850 million, surging 9 percent from 2018, while green finance as well, since finance is closely
trips via air topped 160 million during the period, related to industry. While the 2019 catalog includes
up 9.8 percent year-on-year. However, there were a large number of sub-industries which are not in
about 3.4 billion trips by road, a 5 percent decrease the previous Green Bond Catalog, it also excludes
from 2018. “Convenient, efficient and comfortable a few, most noticeably in the area of industrial
transportation, such as high-speed rail and air energy conservation, energy management centers,
travel have been on the rise, while the number urban and rural infrastructure construction with
of traditional road trips is declining,” Wu said. energy efficiency, passenger railways and waterway
China expand infrastructure investment in 2019, transportation. When it comes to the definition of
including 800 billion yuan in railway construction green, the new catalog also varies with the Green
and 1.8 trillion yuan in road construction and Bond Catalog in a number of cases. For instance,
waterway projects, as well as another 85 billion hydropower can be considered green only if it is a
yuan in airport projects, according to the ministry. key large-scale hydropower project specified in the
Specifically, 200,000 kilometers of roads in rural country’s 13th Five-Year Renewable Energy Plan
areas were under construction, while new rail (2016-20). One of the most important parts of the
lines of some 6,800 kilometers were added, up 45 green finance is green bonds. The NDRC’s catalog
percent from 2018 (Wang, Investment Increases). of green industries could help align two different
bond types that currently exist in the country’s
Infrastructure is more than just transportation. green bond market—the corporate bond and the
According to He Lifeng, head of the National financial bond. To ensure this, professional analysis
Development and Reform Commission, China will of new and old policies is needed with guidance
carry out more efforts to accelerate the construction available for stakeholders, so they can clearly
of an international science and technology center understand what projects are going to be redefined.
in the Guangdong-Hong Kong-Macao Greater Transitional management is also required for the
Bay Area. He said more measures will be taken proper handling of green finance funds and green
to expedite the building of infrastructure in projects, so they might adjust funds with new
Guangdong, Hong Kong and Macao to lay a sound policies while avoiding financial loss in previously
foundation to boost exchange and communication finalized projects (Wang, Spur).
among the regions (Ma, China to Speed).
Meanwhile, the Belt and Road Initiative is
Green Construction getting greener. China spearheads the BRI to
create transcontinental infrastructural and trade
The Chinese National Development and Reform networks across land and sea routes, so as to
Commission along with relevant ministries and deliver development and prosperity to billions of
agencies publishes the Green Industry Catalog that people around the world. More businesses are
establishes the rules for what kind of industries can sewing up plans to invest trillions of dollars to
be defined as environmentally friendly. An annual promote environmentally friendly infrastructure
set of guidelines on green industry are a key building and technology projects in over 130 economies
block in China’s green financial system and help participating in the BRI. And given the BRI’s global
clarify the global green finance mission. The catalog scale, the go-green thrust on development will have
far-reaching impact on the participating economies
196
