Green Trade Barriers and China’s Manufacturing: Micro-Level Analysis of Green Transformation and Policy Implications

This book presents a China-specific analytical framework for assessing the impact of green trade barriers on the green transformation of the manufacturing sector. As the “greening” trend in trade policies gains momentum, research that addresses China’s unique institutional context remains limited. From the unique perspectives of enterprise heterogeneity and differentiated green barriers, this study develops a comprehensive framework that integrates characteristic facts, theoretical mechanisms, impact evaluation, and policy recommendations. This framework enhances our understanding of how green trade barriers influence the green development of manufacturing sector in China. The research introduces a systematic empirical methodology for analyzing the microeconomic effects of these environmental trade shocks. Drawing on an integrated micro-level dataset combining China’s Industrial Enterprise Database, Pollution Emission Database, and the WTO Environmental Database (EDB), this study employs a quasi-natural experimental approach by applying propensity score matching combined with difference-in-differences (PSM-DID) for causal identification. This methodological innovation facilitates a thorough investigation of the specific effects and mechanisms of green trade barriers on China’s manufacturing green transition, including pollution reduction and green innovation. The findings provide valuable governance insights for aligning the green transformation of manufacturing enterprise with global trade environment regulations. While previous studies have predominantly focused on conventional non-technical trade barriers and pollution transfer via trade, there remains a lack of comprehensive exploration regarding the role of green trade barriers in driving corporate green transformation. By analyzing Chinese enterprises’ responses to these barriers, this study offers targeted policy recommendations to effectively cope with external shocks through independent adjustment, while fostering new quality productive forces in the manufacturing sector.