Dr. Betty Xu
© DIN

International standardization is essential for facilitating global trade, stimulating innovation, and mitigating climate change – and China is becoming increasingly important in this process. Almost 20 years ago, in 2006, the Seconded European Standardization Expert in China (SESEC) project was established to foster collaboration between Chinese and European standardization bodies and facilitate mutual comprehension of regulatory frameworks.

We spoke with Dr. Betty Xu, director of SESEC since 2014, about recent reforms in China’s standardization system, the opportunities and challenges both global players are facing today and what she believes is needed for stronger cooperation.

Dr. Xu, at SESEC, you work on behalf of the European standardization bodies, the European Commission, and the European Free Trade Association in China. Why is this organization so important?

The Chinese standardization system is quite different from that of the European Union. SESEC plays a crucial role in facilitating European understanding of Chinese efforts and serves as a conduit for communication and feedback on China's standardization initiatives. The ultimate goal is to reduce technical trade barriers and promote mutual trust between both partners.

What are the main characteristics of China’s standardization system?

In 2017, the Chinese system has been reformed to become more market-driven and in tune with the European model. There are now five hierarchy levels:

• national standards
• sector standards, which are sometimes also called ministry standards
• local standards
• association standards
• enterprise standards

National standards are divided into mandatory and voluntary standards; all other standards are voluntary. The Standardization Administration of China (SAC) is responsible for national standards, while different ministries, local authorities, associations and enterprises can also formulate voluntary standards and technical regulations. However, the national government remains the driving force in the standardization process.

How does the European standardization system differ from that of China?

All European standards are voluntary, but they precede national standards to prevent them from overlapping. In China, it is difficult to avoid overlap, duplication and conflict between standards due to the system’s complex institutional design.

The Chinese system also includes association standards, which are quite rare in the EU, as well as enterprise standards, which are considered technical specifications in the EU and cannot be called standards as they have not undergone the consensus procedure. In China however, enterprise standards are regarded important leverage for the state to enhance industrial technology and competitiveness.

Finally, there are three bodies that develop standards in the EU, compared to one in China:

• the European Committee for Standardization (CEN)
• the European Electrotechnical Committee for Standardization (CENELEC)
• the European Telecommunications Standards Institute (ETSI)

What challenges do you see in standardization cooperation between Europe and China?

Geopolitical instability has become a shared experience within and across nations, from the war in Ukraine to the tech decoupling of China and the United States. Issues of climate change have become more acute than they already were. And last, but not least, economic and political uncertainties in China as well as unbalanced trade between Europe and China sometimes makes cooperation on standardization difficult.

However, China is eager to work together with the EU both economically and technically, and this eagerness also shows in the cooperation with Europe on standards drafting to facilitate export to the EU and other countries. After all, collaboration and harmonization of standards is beneficial for both sides.

In October 2021, China published the “Outline for the Development of National Standardization”. What are the key objectives of this strategy?

SESEC has analyzed the strategy and identified several targets. Most importantly, the Chinese government has promised to

• increase China’s influence on international standards
• optimize the standardization process by digitalizing it and shortening the average development period of national standards to 18 months
• increase the conversion rate of international standards to 85 % by 2025
• further develop association standards
• establish a national quality infrastructure
• reduce the number of standards and improve their quality with the help of a feedback system
• develop stricter energy consumption requirements for key products

How does SESEC assess the progress in implementing the strategy?

According to our analysis, around 60 % or more of the targets were achieved by October 2024:

• The average development period of national standards was reduced to 24 months in 2023 and 2024, six months short of the original goal.
• A total of 8,445 organizations were registered as association standard development organizations. In 2021, it was only 400.
• A total of 89,240 association standards have been published, compared to 28,989 association standards three years earlier.

However, the conversion rate of international standards was estimated at only 60 to 70 %, and the number of standards actually increased among all categories. Nevertheless, a lot of effort has been put into the national quality infrastructure, feedback systems, digitization, and international standards; and energy efficiency and decarbonization standards drafting has become one of China’s priorities.

Mitigating climate change is one of the most pressing issues of our time. What role does the standardization of green and sustainable technologies play in China?

It plays a crucial role in supporting China's environmental policies and economic transformation. This focus on standardization is part of China’s broader goal to become a leader in green technology and meet its ambitious climate targets – including reaching carbon neutrality by 2060.

For green technologies like renewable energy systems, electric vehicles, and energy-efficient building materials, standards ensure that products are reliable and compatible with existing infrastructures. This not only drives innovation but also fosters consumer confidence in new technologies, which is essential for widespread adoption.

Apart from the 2017 reform and the standardization strategy, which actions does China take to promote the transition to a climate-neutral industry?

In July 2024, the Chinese Ministry of Industry and Information Technology (MIIT) issued the “Action Plan for Further Strengthening the Carbon Peaking and Carbon Neutrality Standardization and Measurement System”. It sets ambitious targets for standardization in China such as

• the release of 70 national standards covering carbon accounting, reduction, capture, utilization
• the establishment of a comprehensive carbon emission accounting and evaluation system for enterprises, projects, and products by the end of 2025
• matching energy efficiency standards in key sectors to international levels
• launching 100 standardized carbon management pilot projects.

In the future, China will also include ethical and social standards that address the broader impacts of technological adoption on society and the environment. Last, but not least, China is committed to enhancing international cooperation in climate-related standards.

Which other areas do you see as currently relevant in international standardization, and how important is the cooperation between Europe and China?

Some harmonized international standards are still lacking – most importantly for new technologies like Artificial Intelligence, 6G and e-mobility as well as green transition-related areas. Renewable energy sources are crucial for sustainable development, and hydrogen technology stands out as a key area of growth and innovation. Product carbon emissions calculation and reduction standards are equally important. Technical requirements that could be relevant to market access should also be harmonized in international standardization.

The best and most prioritized platform for standardization cooperation in these areas should be the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC). However, some discussions and technical alignment between China and the EU might be necessary before moving the project to the international level.

Finally, how will standardization in China and Europe develop in the coming years?

China will most likely keep on implementing the standardization reform and evaluate the results. With new leadership changes at SAC, China could see some modifications to the current system. As the country continues to focus on its export strategy, it will put more effort and resources on international standards adoptions and participation to facilitate this process.

The biggest challenge in Europe is the significant ruling concerning the accessibility of EU-harmonized standards issued by the Court of Justice of the European Union (CJEU) in March 2024 (publicly known known as the “Malamud Case”). This may force some of the member states’ Standards Development Organizations (SDOs) to change or optimize their business models. But the EU’s standardization system will remain stable.

Thank you very much, Dr. Xu, for sharing your insights!