Policy forum: Challenges and ways forward in implementing “a guide on sustainable overseas forest management and utilization by Chinese enterprises”

Abstract

In 2009, the Chinese State Forestry Administration (SFA) and the Ministry of Commerce (MOFCOM) jointly issued the voluntary Guide on Sustainable Overseas Forest Management and Utilization by Chinese Enterprises (herein after referred to as “the Guide”). The main aim is to provide guidance to Chinese companies that invest in overseas forestry development and direct them to develop forestry in other countries in a sustainable way, taking into consideration social and environmental impacts. Thus far, the uptake of the Guide in practical strategies and decisions by enterprises, however, has been limited. Thus, this article aims to identify the main causes for the limited application and challenges in practical business. Based on a questionnaire survey and interviews with Chinese companies, this article finds that after years of advocacy and promotion, the awareness of the Guide among Chinese forest enterprises has increased, but the implementation of the Guide still faces challenges. By reviewing the promotion experience of other international non-compulsory guides, this study provides policy recommendations to encourage Chinese companies to follow the Guide and adopt principles of the Guide in their operations abroad.