AHK Policy Deep Dive

The Policy Deep Dive provides insights into latest important policy developments from various fields and explains their implications and opportunities for German businesses. The full version of the AHK Policy Deep Dive is exclusively available to members of the German Chamber and is delivered directly via email.

Decoding China’s Focus on Green Tech

At the 2024 Two Sessions, it was emphasized that high-quality development should be enforced to achieve the upgrading of the Chinese economy opposed to traditional growth models. This transformation also involves a focus on green technology, which includes high productivity levels, efficiency, innovative solutions, and advanced manufacturing techniques. Moreover, in the area of green development, the newly emerged catchphrase “new quality productive forces” can be translated to advanced techniques that will further promote China’s decarbonization goals.

Which green technologies are currently receiving the most attention in China and where should Germany and German companies keep an eye on?

To shed more light into this topic, we took a close look at the latest green tech policies in China and opportunities for German companies:


Opportunities for German Companies

Examples which are in line with the directions of latest policy updates are:

  • Energy efficiency: Germany has a leading position in energy efficiency technologies, such as smart metering, building insulation, and industrial automation. These technologies can help China achieve its energy saving and carbon reduction goals and reduce its dependence on fossil fuels.
  • Waste management: Germany has a high level of waste management, and has been promoting waste prevention, recycling, and recovery. These practices can help China deal with its mounting waste problem and create value from waste resources.
  • Renewable energy: Germany has a rich experience in developing and utilizing renewable energy sources, such as solar, wind, hydrogen and biomass. These sources can help China diversify its energy mix, increase its energy security, and reduce its carbon footprint.
  • Lightweight Solutions: German companies are strongly active in the production of lightweight composite materials (e.g. recyclable PET foam and balsa wood), replacing steel with plastic or other solutions such as products made from aluminum alloys.
  • Green Buildings: During planning, design, construction, operation, maintenance, renovation, and demolition German companies pay strong attention to efficiently use energy, water, and other resources, to protect occupants’ health and improve employee productivity as well as to reduce waste and pollution.
  • Energy Management Systems: German companies provide hardware and software applications for safeguarding process plants, and offer solutions for entire demo projects, for example smart energy villages.


Guiding Opinions on Accelerating Green Development of Manufacturing Industry

In early March 2024, the Ministry of Industry and Information Technology (MIIT) of China, in collaboration with seven other ministerial departments, issued the "Guiding Opinions on Accelerating Green Development of Manufacturing Industry" (hereinafter referred to as the "Guiding Opinions"). The document catalyzes the green transformation of China's manufacturing sector and shows important directions in China's journey towards sustainability.


The Green and Low-Carbon Transformation Industry Guidance Catalogue (2024 Edition)

China’s Green Industry Guidance Catalogue (2019 Edition) defines the scope of the green industries in China and was jointly released in 2019 by seven government agencies including NDRC, the People’s Bank of China, and the Ministry of Ecology and Environment. To align with China’s recent green development goals, the 2019 Edition has been revised for the first time in the 2024 Edition.


Implementation Plan for Green and Low-Carbon Advanced Technology Demonstration Projects

In August 2023, NDRC and 9 other national departments have taken the initiative to release a new policy Implementing Demonstration Projects Featuring Green and Low Carbon Technologies (in short “Demonstration Project”) to provide strong support including financial and tax support for several key sectors contributing to achieving China’s carbon peak and neutrality targets.


The Catalogue for Guiding Industry Restructuring (2024 Version)

The National Development and Reform Commission (NDRC), in collaboration with relevant government departments, undertook a significant revision of the Catalogue for Guiding Industry Restructuring (draft version) published in July 2023, and released the final version called the Catalogue for Guiding Industry Restructuring (2024 Version) on Dec 27, 2023. This updated version serves as a compass for investment direction and as a foundation for policymaking across crucial economic domains.