To Create a Greener Future, the West Can’t Ignore China

In the current geopolitical landscape, marked by escalating tensions between Western nations and China, it’s a challenge to identify potential areas of collaboration between East and West that would yield mutual benefits and foster trust. But fighting climate change is one.

Recently, Lola Woetzel, Senior Partner Emerita at McKinsey & Company, and I co-authored an article featured in the Harvard Business Review, shedding light on this crucial topic. In the article, we examined the complexities of the current climate-change opportunities in China and outlined four strategies for businesses ready to enter the market.

THE OPPORTUNITY

Fighting climate change is a promising area for engagement between Western companies and China. After all, China is responsible for 27% of global emissions and offers a vast market for green tech.

THE CHALLENGE

Geopolitical strains, the disruption of business relationships by the Covid pandemic, and domestic Chinese policies all make engagement complex.

THE SOLUTION

To engage effectively with China, consider forming coalitions for safe technological development, forging local partnerships for market access, and insourcing innovative technology.

A version of this article appeared in the May–June 2024 issue of Harvard Business Review. You can also access the article here.