China’s Practices in Trade
and Environment
LI Yihong
E-mail: liyihong@mofcom.gov.cn
Part I
China’s Policy on
Environment Protection
June 19, 2007
Part I China’s Policy on
Environment Protection
 Eleventh Five-year Plan: Main Indicators on Resources
and Environment
Indicators
2005
2010
growth
rate(%)
Nature
Reduction on energy consumption per
unit of GDP（%）
20
binding
Reduction on water consumption per unit
of industrial added-value（%）
30
Binding
Utilization Coefficient of water
consumption on agriculture irrigation
0.45
0.5
0.05
expecting
Synthesized Utilization Ratio of industrial
solid waste (%）
55.8
60
4.2
expecting
Retaining Volume of culture land
（100 million hectare）
1.22
1.2
-0.3/y
binding
10
binding
1.8
binding
Reduction on total discharge of major
pollutants（%)
Coverage Ratio of Forestry（%）
June 19, 2007
18.2
20
Part I China’s Policy on
Environment Protection
Eleventh Five-year Plan:
Part VII: Building up a energy-saving and environmentally friendly society
--Development of Circular Economy
--Protection and Recovery of Ecosystem
--Reinforcement of Environment Protection
--Strengthening of Resources Management
--Rationally Utilization of Marine & Climate Resources
June 19, 2007
Part I China’s Policy on
Environment Protection
REPORT ON THE WORK OF THE GOVERNMENT
(Delivered by Premier Wenjiabao at the Fifth Session of
the Tenth National People's Congress on March 5, 2007 )
 Achievements of Eleventh Five-year Plan in 2006:
--While energy consumption per unit of GDP for the previous three
years rose by 4.9%, 5.5% and 0.2% respectively, it dropped by 1.2% in 2006.
--Growth in total emission of major pollutants declined:
Chemical oxygen demand rose 1.2%, down from an increase of
5.6% the year before.
Discharge of sulfur dioxide rose 1.8%, down from 13.1% in
the previous year.
June 19, 2007
Part I China’s Policy on
Environment Protection
REPORT ON THE WORK OF THE GOVERNMENT
(Delivered by Premier Wenjiabao at the Fifth Session of
the Tenth National People's Congress on March 5, 2007 )
Main goals for China's economic and social development in 2007:
--On the basis of structural improvement, improved productivity, reduced
consumption of energy and environmental protection, GDP is projected to increase
by 8%.
--The number of jobs created in urban areas is to be at least 9 million, and
the rate of registered urban unemployment is expected to be kept below 4.6%.
--The overall inflation level is to remain comparatively stable. The
increase of consumer prices is projected to stay below 3%, and it is expected to
improve the imbalance of international payments.
June 19, 2007
Part I China’s Policy on
Environment Protection
REPORT ON THE WORK OF THE GOVERNMENT
(Delivered by Premier Wenjiabao at the Fifth Session of
the Tenth National People's Congress on March 5, 2007 )
In order to achieve the goals and fulfill the tasks for
this year's economic and social development, the
following principles are stressed to adhere:
“endeavor to improve the quality and efficiency of economic growth.
Emphasis should be laid on saving energy and resources, protecting the
environment and using land intensively……”
June 19, 2007
Part I China’s Policy on
Environment Protection
REPORT ON THE WORK OF THE GOVERNMENT
(Delivered by Premier Wenjiabao at the Fifth Session of
the Tenth National People's Congress on March 5, 2007 )
Priorities for the 2007:
--Reinforced measures will be taken to save energy, lower energy
consumption, protect the environment and use land economically and intensively.
--The focus of energy-saving and environmental protection efforts will
be made on the following areas:
Improve and tighten enforcement of energy consumption and environmental
protection standards;
Resolutely close down backward production facilities;
Concentrate work on key industries and enterprises;
Improve the policy agenda on energy-saving & environmental protection;
Accelerate the development of energy-saving and environmentally friendly
technologies;
Beef up the measures on elimination of pollution and protection of environment
Strengthen supervision and governance of compliance with the law;
Fulfill the objective-outcome performance system for saving energy and
protecting environment
June 19, 2007
Part II
China’s Practice in Economic
Cooperation Agreements
June 19, 2007
Part II China’s Practice in
Economic Cooperation Agreements
General Practice
Environment cooperation is usually as a
part in the Economic Cooperation
Agreements concluded by China and its
trade partners.
Note: Economic Cooperation Agreements only refer to those no
market access issues have been touched upon.
June 19, 2007
Part II China’s Practice in
Economic Cooperation Agreements
 Examples:
China-Australia Trade and Economic Framework Arrangement
Paragraph 3: The parties will take steps to promote strategic
cooperation in industries with outstanding potential. The main sectors are,
inter alia, agriculture, energy and mining resources, TCF, mechanical and
electronic products, tourism, education, inspection and quarantine, customs,
environmental protection….
June 19, 2007
Part II China’s Practice in
Economic Cooperation Agreements
 Examples:
China-New Zealand Trade and Economic Cooperation Framework
Paragraph 2: The Parties will take steps to promote strategic
cooperation in areas of significant mutual economic potential, inter
alia: agriculture; animal husbandry; forestry; wool; services, including
education, tourism, air services, and labor and rofessional services;
science and technology; environmental protection…
June 19, 2007
Part III
China’s Practice in FTAs
June 19, 2007
Part III China’s Practice in FTAs
General Practice
There is no Environment Chapter in any FTAs signed or
under negotiation, while environment goods and services
are included in the goods and services parts respectively.
June 19, 2007
Part III China’s Practice in FTAs
Approaches:
＊No environment language
＊Sustainable development mentioned in the preamble
＊Common understanding that environment measures could be considered
when to interpret the “General Exceptions”
＊To be reflected in the Cooperation Chapter
June 19, 2007
Part III China’s Practice in FTAs
China-Chile FTA:
Article 108
Labor, Social Security and Environmental Cooperation
The Parties shall enhance their communication and cooperation on labor,
social security and environment through both the Memorandum of
Understanding on Labor and Social Security Cooperation, and the
Environmental Cooperation Agreement between the Parties.
June 19, 2007