This report illustrates China’s progress towards green growth from an international perspective, with focus on industry and the interplay between industrial development and environment. It starts with depicting the structural shifts that the Chinese economy, in particular its industry, has undergone since the early 1990s. It briefly discusses the driving forces behind China’s emergence as global manufacturing powerhouse, and the environmental implications of this rapid phase of industrialisation. It also assesses China’s position vis-à-vis green growth using the OECD green growth measurement framework and indicators.

The findings suggest that China has made great strides towards improving the environmental and resource productivity of its economy, but more opportunities can be exploited for greater efficiency gains that are vital to the shift to a low carbon, resource efficient and competitive economy. They also indicate that the policies in place, though showing first results, remain insufficient to cope with increasing environmental pressures and with historical and cumulated pollution loads. Further progress will largely depend on the country’s capacity to integrate environmental aspects into decision-making in all policies and sectors, and at all levels, and ensure that industrial and environmental policy objectives and measures are well aligned and mutually supportive.