Institutional Relationships Promoting the Development of Chinese Green Industry

Abstract

Every five years, China develops a long-term plan called Five Year Plan. In recent fifteen years, China’s rapid economic development with environmental issues is becoming increasingly important. Until China’s 12th Five Year plan in 2010, it explicitly pointed out to promote green energy and develop energy-efficient economy to keep the country’s economic growth. However, unlike the developed countries, low capacity of market surveillance and low-profit products output plus lacks of management experience which push China’s green industrial development had encountered a bottleneck for most of companies. State owned enterprises, large sized companies and small and medium sized companies (SMEs) have different attitudes regarding to develop green industry. State owned enterprises and large sized companies have its financial capability to cope with the development of green industry, SMEs have to face with the financial capacity, industry structure, as well as management issues in order to respond the new regulations. Therefore the international environmental service company CRS which engages in reprocess service in China is belonging to SMEs that face not only the same problems mentioned above, but also doing business in Chinese business environment. The company is the sole sponsor for the project. The purpose of the research is providing the possible operating contexts as well as the possible future in Chinese green market. Hereby the research is formulated as: How do institutional relationships promote the development of green industry in China? To answer the research questions, there are mainly three methodologies applied into the project, namely literature review, scenario analysis and interviews.