Strategic Engagement with SDGs in China’s Semiconductor Sector: Compliance, Performance Enhancement, and National Policy

This paper explores how China, as an authoritarian regime, has strategically utilized its private sector to enhance its global image by aligning with Sustainable Development Goals (SDGs). While much of the existing research on state-business relations in China emphasizes state control, this paper sheds light on the often-overlooked symbiotic relationship between the government and private companies. The interplay between state mandates and corporate innovation not only enhances financial performance, as reflected in companies’ equity market valuations, but also elevates China’s global reputation. Drawing on Environmental, Social, and Governance (ESG) reports from the top 100 Chinese semiconductor companies, this analysis highlights the role of corporate sustainability efforts in bolstering the country’s global standing. Case studies of firms like SMIC and BYD illustrate the significant advantages of aligning with SDGs, emphasizing the crucial role of China’s “whole-nation system” in promoting sustainable technological advancement. This analysis provides a fresh perspective on the rapid expansion of China’s tech sector and highlights the more nuanced and interdependent relationship between the state and private enterprise.