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international standard-setting agencies focusing on standards is an effective way of maintaining this
information and communications technology (ICT). dominance in the extremely lucrative renewable
Likewise, technology patent applications from China energy and EV market. The transitional process
also witnessed an increase of 23.8 percent in 2021, to meet higher environmental standards will also
ahead of all other countries. Huawei, the Chinese create new opportunities.
giant in the ICT industry, continues to lead in patent
applications in digital communication with 3,544 What are the implications and
applications submitted in 2021, ahead of other potential benefits for foreign
brands like Ericsson, Qualcomm, and Samsung. companies?
Meanwhile, significant investments in advancing On the one hand, the proposed China standards
technologies remain one of China's main priorities. may impose additional requirements on foreign
In 2021, China's digital economy was worth over businesses–they have to follow corresponding China
RMB45 trillion (US$6.72 trillion), accounting for 39.8 standards to operate in or sell to this vast market.
percent of GDP, according to official data. The 14th
Five Year Plan (14th FYP) lays out plans to stipulate Nevertheless, this does not mean that foreign
the value-added of digital economy businesses suppliers are shut out the door. As reflected in the
to its GDP to 10 percent by 2025. Following this Catalogue of Encouraged Industries for Foreign
guidance, the government is pushing the digital Investment, foreign businesses are specially
transformation of Chinese industries to reach new welcomed in many sectors, especially those that
heights and stay integral to the global economy in have an expertise in a certain area, such as high-end
the coming decades. manufacturing, energy saving and environmental
protection technologies and advanced services, and
• Green transition so on.
Another key focus of the Action Plan centers on Foreign firms are suggested to actively participate
the buzzwords “green” and “ecosystem”. China in the development of China standards to minimize
also views technical standards through the lens of the potential side effects. As standard-setting is a
green and sustainable development. The Action highly specialized process, international companies
Plan mentions carbon-neutral standards, which with expertise in different areas can actually play
are instrumental in saving energy, regulating large- a strong role in it, which in turn will better position
scale energy consumption, and maintaining energy them to benefit from it.
efficiency. This is in line with China's broader dual
carbon goals as it furthers support for renewable On the other hand, China's increased involvement
energy and sustainable development. in standards-setting could contribute to public good
and improve the competitiveness of China-based
With a significant head start compared to other businesses. Foreign companies can also benefit
countries, China has already captured the renewable from the country's overall economic performance
energy market and become a global leader in solar and supply chain efficiency.
power and electric vehicle (EV) batteries. Currently,
China has one of the largest and fastest growing
energy storage markets in the world, overtaking
Europe and the United States. Developing technical
5 AMCHAM SOUTH CHINA
international standard-setting agencies focusing on standards is an effective way of maintaining this
information and communications technology (ICT). dominance in the extremely lucrative renewable
Likewise, technology patent applications from China energy and EV market. The transitional process
also witnessed an increase of 23.8 percent in 2021, to meet higher environmental standards will also
ahead of all other countries. Huawei, the Chinese create new opportunities.
giant in the ICT industry, continues to lead in patent
applications in digital communication with 3,544 What are the implications and
applications submitted in 2021, ahead of other potential benefits for foreign
brands like Ericsson, Qualcomm, and Samsung. companies?
Meanwhile, significant investments in advancing On the one hand, the proposed China standards
technologies remain one of China's main priorities. may impose additional requirements on foreign
In 2021, China's digital economy was worth over businesses–they have to follow corresponding China
RMB45 trillion (US$6.72 trillion), accounting for 39.8 standards to operate in or sell to this vast market.
percent of GDP, according to official data. The 14th
Five Year Plan (14th FYP) lays out plans to stipulate Nevertheless, this does not mean that foreign
the value-added of digital economy businesses suppliers are shut out the door. As reflected in the
to its GDP to 10 percent by 2025. Following this Catalogue of Encouraged Industries for Foreign
guidance, the government is pushing the digital Investment, foreign businesses are specially
transformation of Chinese industries to reach new welcomed in many sectors, especially those that
heights and stay integral to the global economy in have an expertise in a certain area, such as high-end
the coming decades. manufacturing, energy saving and environmental
protection technologies and advanced services, and
• Green transition so on.
Another key focus of the Action Plan centers on Foreign firms are suggested to actively participate
the buzzwords “green” and “ecosystem”. China in the development of China standards to minimize
also views technical standards through the lens of the potential side effects. As standard-setting is a
green and sustainable development. The Action highly specialized process, international companies
Plan mentions carbon-neutral standards, which with expertise in different areas can actually play
are instrumental in saving energy, regulating large- a strong role in it, which in turn will better position
scale energy consumption, and maintaining energy them to benefit from it.
efficiency. This is in line with China's broader dual
carbon goals as it furthers support for renewable On the other hand, China's increased involvement
energy and sustainable development. in standards-setting could contribute to public good
and improve the competitiveness of China-based
With a significant head start compared to other businesses. Foreign companies can also benefit
countries, China has already captured the renewable from the country's overall economic performance
energy market and become a global leader in solar and supply chain efficiency.
power and electric vehicle (EV) batteries. Currently,
China has one of the largest and fastest growing
energy storage markets in the world, overtaking
Europe and the United States. Developing technical
5 AMCHAM SOUTH CHINA
