The Effect of Chinese Green Transformation on Competitiveness and the Environment

People in China are paying more attention to environmental issues as they increase in importance and consequence. At the same time, the Chinese government has gradually begun paying more attention to the environment, advocating sustainable development. The government has been actively developing green financial products such as green loans, green insurance, green funds, and other financial products to help Chinese companies “go green” and reach peak carbon and carbon-neutral goals ahead of schedule. China attaches great importance to its “green transformation” goals, as can be seen from the number of new policies related to green and sustainable development. Under these circumstances, companies must follow the policy and carry out green upgrades or risk total failure. This chapter mainly discusses the background of what firms face in China's green finance environment, taking clean energy, green buildings, and green transportation as examples of how companies should adapt to these trends and improve their competitiveness.