In recent years, the Chinese government has introduced a series of strategic initiatives aimed at enhancing the country’s capacity to exploit marine resources and develop the “blue economy”, the sustainable use of ocean resources for socioeconomic development. During the 14th Five-Year Plan (2021-25) period, the Chinese government has vigorously developed the blue economy, introducing the 14th Five-Year Plan for Development of the Marine Economy, the 14th Five-Year Plan for Marine Ecological and Environmental Protection, and the Action Plan for the Comprehensive Management of Key Marine Areas. Those strategies provide policy support and directional guidance for the high-quality development of the blue economy during the acceleration of ocean-power construction.

Investment promotion 

China prioritizes the establishment of a modern marine industrial system in the context of the 14th Five-Year Plan, which necessitates strengthening innovation capacity in marine science and technology, coordinating efforts to protect and promote the use of marine resources, and increasing investment in the blue economy. China is establishing a comprehensive governance structure to facilitate the development of the blue economy. This top-down approach aims to better integrate “capable government” and an “efficient market” through policy guidance and incentives, and to expedite the exploration of a distinctive blue-economy development path based on China’s specific characteristics.

International collaboration

The challenge of climate change has emerged as a major global concern, compelling the international community to work diligently on relevant agendas and initiatives. In recent decades, China has been actively engaged in international cooperation to advance the development of the blue economy. This includes collective deliberations on the sustainable exploration and utilization of marine resources, the facilitation of transition from conventional to renewable energy, the promotion of upgrading innovations in the maritime industry, and the acceleration of sustainable transitions. The ultimate goal is to foster high-quality development of the blue economy, thereby establishing the oceans as a new impetus of growth and expansion of global economic capacity as well as a long-term stimulus for sustainable development.

Policies

In January 2018, the People’s Bank of China, in collaboration with the State Oceanic Administration and other relevant authorities, jointly issued the “Guiding Opinions on Improving and Strengthening Financial Services for Marine Economic Development”. This directive emphasized the importance of actively exploring innovative investment and financing systems and models to support the blue economy.

In October 2020, the Shenzhen Stock Exchange and the Ministry of Natural Resources jointly launched the “CNI Blue 100 Index”, which is the first authoritative blue-economy-themed stock index in China. The index reflects the activities of listed companies in the maritime economy. It is essential to establish an indicator for China’s blue economy and improve the allocation of resources in the maritime industry. In July 2022, the Green Bond Standards Committee officially released the “China Green Bond Principles”. The new principles provided a precise definition of “blue bonds”, which are financial instruments designed to generate funds for marine conservation and the responsible exploitation of marine resources.

The China-ASEAN Blue Economy Partnership aims to establish a mutually beneficial relationship of interests. In particular, China and ASEAN countries have numerous overlapping interests, including economic development, national security, and sustainable development 

Local governments’ practices

Shenzhen places a high priority on the development of blue finance and has rolled out comprehensive policy approaches, financial support, and other measures to support marine projects and businesses in order to scale up the blue economy and encourage investment. The Shenzhen government has unveiled a plan for the development of a new marine town with a higher level of environmental and living quality. The project is a significant strategic initiative to transform the marine industry in the Guangdong-Hong Kong-Macao Greater Bay Area.

Blue carbon is the carbon stored in coastal and marine ecosystems. Blue-carbon ecosystems are efficient at capturing and storing carbon over the long term, as they are capable of sequestering carbon at higher rates per unit area than terrestrial ecosystems. The Hainan International Carbon Emission Trading Center was established in March 2022. The center intends to trade blue-carbon products using a market-based model. A few months later, the Ministry of Natural Resources issued an accounting standard for blue carbon. This standard can place China in a favorable position in international carbon negotiations, as its detailed calculation method and blue carbon pricing proposal can serve as a guide for the development of a globally recognized standard.

Practices of financial institutions

The present practical experience of domestic financial institutions in developing the blue economy highlights three primary aspects. First, some pioneering financial institutions have adopted measures to facilitate the establishment of a blue financial system. This includes developing the blue finance strategies, innovating and deploying blue finance products (such as blue bonds or loans), and setting up research institutions that specialize in blue finance. Furthermore, a growing number of domestic financial institutions are progressively collaborating with customers, partners, other finance institutions and businesses to establish a systematic global market for blue finance. Additionally, the financial institutions are adaptively tailoring their operations to regional conditions while incorporating and localizing features within the overall framework of blue finance. This strategy enables financial institutions to provide increased support for local blue-finance initiatives and meet the needs of ocean-related businesses for financial services. In general, Chinese financial institutions have employed multiple strategies for developing blue finance, with an emphasis on inclusiveness and universality. In addition, the introduction of blue bonds, blue indexes and blue funds to finance marine projects has expanded the spectrum of blue financial products and acquired valuable experience for establishing a model region for blue financial innovation and reform.

RCEP facilitates blue-economy partnership

The China-ASEAN Blue Economy Partnership, initiated and advanced by China with the active participation of all involved countries, aims to improve global ocean economic governance. These proposals are designed to enhance the sustainability of ocean governance and to meet the development interests and demands of all participating countries for the blue economy.

The setup of the Regional Comprehensive Economic Partnership creates opportunities for all nations involved. The RCEP’s opposition to unilateralism and protectionism coheres with the fundamental principles of establishing the blue economy partnership. The RCEP has a pivotal function in deepening economic integration and strengthening economic partnership. It has further enhanced the collaborative alignment among China and Association of Southeast Asian Nations (ASEAN) countries with regard to regional value-chain collaboration. Moreover, it has also fortified the trust in the cooperation between China and ASEAN while potentially mitigating the risks of various adverse factors that pose a threat to the China-ASEAN Blue Economy Partnership.

The China-ASEAN Blue Economy Partnership aims to establish a mutually beneficial relationship of interests. In particular, China and ASEAN countries have numerous overlapping interests, including economic development, national security, and sustainable development. As the participating nations intend to achieve mutual co-development and prosperity, their strategic interdependence makes it crucial for the RCEP to strengthen and stabilize the partnership between China and ASEAN in the blue economy.

Thus, the future development of the China-ASEAN blue-economy partnership must prioritize the effective reinforcement of benefit sharing. In the context of the 21st Century Maritime Silk Road, it is imperative to enhance the regional economic governance structure, create a conducive development atmosphere, properly address territorial disputes in the South China Sea, promote political confidence-building measures, and speed up the establishment of a cooperative platform for blue-economy cooperation, thereby promoting the prospect of a community of shared destiny with ASEAN countries.

The author is a researcher at the ESG Research Center of the Hong Kong Financial Research Institute of the Bank of China.

The views do not necessarily reflect those of China Daily.