Certifying China: the rise and limits of transnational sustainability governance in emerging economies

Environmental governance in China is becoming increasingly complex, as diverse governance mechanisms initiated by both state and non-state actors are positioning for operational space in the environmental sphere. Transnational governance, that is, the transboundary cooperation of non-state actors to achieve public goals, is one example of a significant new mechanism. International eco-certification and labelling programs represent an influential transnational mechanism not yet studied systematically in the Chinese context. This is the focus of Yixian Sun’s new work Certifying China.

The author’s main argument is that eco-certification schemes have been able to establish a footing in China because state actors are willing to support such schemes to further their own political and economic objectives and priorities. This argument has two important theoretical implications. First, it points to different types of transnational governance dynamics, particularly the role of state actors, which is typically not considered in the literature on transnational governance. As is understood conventionally, eco-certification schemes are a form of non-state and market-driven governance. There is also a strong North–South divide, with actors in the Global South trying to gain access to northern markets by adopting eco-certification schemes which originate in and are controlled by the Global North. However, the author contends that the decisions made by state actors in the Global South are important, if not decisive, enabling factors in eco-certification schemes. The role of national industry associations is particularly important. Due to their influence and networks, these associations could effectively nudge businesses to adopt eco-certification programs. Accordingly, the Chinese experience challenges the conventional labelling of eco-certification schemes as ‘private governance’.

The second important theoretical issue raised is a perceived conflict in goals between international and domestic actors, although this is not discussed as extensively in the book. The author correctly states that Chinese state actors are motivated primarily by developmental rather than environmental objectives. However, this appears to place state power in potential conflict with the power of transnational market agents who are more committed to environmental goals. Such apparent disagreement gives rise to questions around the effect this might have on achieving environmental goals, how conflicts can be resolved, and what compromises have been reached. For example, to what extent are eco-standards enforced in China? Are the international standards a rigid, one-size-fits-all, or can they be adopted flexibly by local actors? These political issues remain unexplored in the book, as the author chose to focus on the synergetic relationship between developmental and environmental rationales under the concept of sustainable development. Nevertheless, a limit is suggested to the power of eco-certification schemes as a governance tool, i.e., successfully aligning international, local, environmental, and non-environmental interests. Such international collaboration in eco-certification could be fragile, short-lived, and subject to manipulation in the absence of a genuine shared interest in environmental protection and sustainability.

The author’s arguments are substantiated by case studies on the domestic adoption of eco-certification in three commodity chains: seafood, palm oil, and tea. The diversity of the case studies significantly enriches the analysis. For instance, China is a producer and net exporter of seafood and tea, but a consumer and importer of palm oil. However, in all three instances, a common theme emerges: the key to ensuring the success of eco-certification schemes is a partnership between international agents and domestic state actors, particularly quasi-state industry associations. Captivating accounts are presented of transnational agents cultivating close connections with state actors to form strategic alliances, and of state actors helping to convince Chinese companies to adopt the certifications. The cases illustrate the importance of adopting a proactive strategy to engage with state actors and promote eco-certification in China. The empirical case studies are thoroughly researched, supported by a wealth of qualitative and quantitative data. In particular, the interviews with practitioners are interesting, as readers are afforded inside information on high-profile eco-certification schemes, such as Fairtrade and the Roundtable on Sustainable Palm Oil (RSPO) in China. Moreover, the author’s comprehensive fieldwork enables these stories to be presented in an engaging and vivid manner. One example given is an entertaining and illuminating account of how a Chinese company convinced Fairtrade International that it complies with the democratic decision-making criterion by providing an English translation of the ‘Organic Law of the Villagers’ Committees’. This law provides rules and regulations for village-level elections and self-governance.

In summary, the rise of eco-certification in China is a new and significant governance phenomenon. This informative book makes a valuable contribution not only in terms of its rich empirical evidence but also its perceptive theoretical engagement with the political economy of environmental governance, particularly regarding the interaction between international actors and the Chinese state. In several ways, the findings of the book echo those from other studies of transnational environmental governance in China which emphasise that the role of the state cannot be ignored even when it comes to voluntary standards, international technology transfer, and other market-driven initiatives. This book will be of interest to a broad audience, including students, practitioners, and researchers – all who wish to gain an understanding of the challenges and opportunities related to transnational environmental governance in China.