152.2 Policy gaps and areas of improvements 2.2.1 Gaps in Chinese frameworks and policy directions Currently, SBE has not been introduced as the key theme in China’s FYP, and there lacks explicit favorable policy signals for advancing the SBE. In 2017, China introduced its “Implementation Opinions on Building a Strong Maritime Country,” which outlines the objectives and measures for the ocean economy’s development. However, this document is not a traditional FYP but a long-term strategic plan. This plan falls short in providing a detailed roadmap for promoting the practical development of the SBE and has not yielded sufficiently clear signals indicative of favorable policies to develop maritime sectors in a way that also results in nature and community benefits. Despite the increasing global consensus on the value and strategic significance of the SBE, China has not yet formulated a national or provincial-wide systematic strategic plan for the SBE . While some provinces like Shandong and Zhejiang have piloted blue or marine economic zone development plans, these efforts lack the overarching framing of SBE development to synthesize them. China’s major policies related to the blue economy highlight modernizing marine economic development and include some elements of marine ecological protection, but they overlook the inclusion and improvement of social wellbeing and livelihoods, including those of women and other marginalized groups. Additionally, these policies lack alignment with the global conversation on the blue economy, Kunming-Montreal Global Biodiversity Framework (GBF) and the climate goals set in the Paris Agreement. There is no consensus on the definition of the term “blue economy” in China , and many perceptions and views on the blue economy come mainly from the international level. Official documents or reports use the notion of “ocean economy,” while the term blue economy or SBE mostly appears in provincial events or occasions held by institutes attached to ministries. This lack of a clear definition complicates the balance between marine economic development and ecological protection, impeding sustainable development efforts. The terms “blue economy”, “green economy”, and “ocean economy” are often confused, leading to misunderstandings about the environmental sustainability, equity, inclusiveness and climate resilience that the blue economy emphasizes. SBE, on the other hand, clearly implies that the ocean economy should be sustainable. This clarity supports the development of more coherent strategies and action plans. The incentive level for local governments or entities to develop an SBE is still low . Currently, several provinces and cities are building their ocean pilot zones, each taking a specific sector to incubate their industrial expertise. In January 2024, Weihai City formulated and issued China’s 34 “Resolution of the Central Committee of the Communist Party of China on Further Deepening Reform Comprehensively to Advance Chinese Modernization”. Adopted at the third plenary session of the 20th Central Committee of the Communist Party of China on July 18, 2024.first catalogue of sustainable investment and financing support for blue industries. This initiative is an innovative example of Weihai’s development of the blue economy, which will promote the effective integration of industrial elements and financial capital and guide financial resources to focus on the blue economy. However, more resources should be mobilized to match these policies. Promoting a sustainable economy related to the ocean can adapt actions taken to address climate change . Policies to help develop the SBE include incentives for small and medium-sized enterprises and individuals, such as subsidies designed to encourage SBE innovations and efficiencies, the organization of industrial clusters, like sustainable industry parks, and the provision of appropriate capacity building innovative solutions for mobilizing finance and capacity should also be further sought. These incentives should be built on the progress of the points mentioned above. 2.2.2 Governance system on ocean economic sectors and conservation matters The SBE in China is currently more of a development concept focused on green growth approaches rather than a concrete policy. This absence of a clear definition, shared goal, accountability and operational framework for the SBE hinders the integration of sustainable practices and resource allocation. Successful environmental mainstreaming in China has been achieved through clear leadership by specific ministries, as seen in areas like wetland conservation and climate change. The SBE requires similar coordination, but currently, various ministries handle different aspects, leading to potential policy conflicts. For instance, the MNR oversees overall ocean economy development, the MEE manages ocean protection and pollution control, and the Ministry of Agriculture and Rural Affairs handles aquaculture and fisheries. This fragmented governance system lacks a unified approach, which can undermine SBE progress. Establishing a leading ministry, akin to the MEE’s role in climate change, could streamline efforts and ensure cohesive policy implementation. Additionally, China’s fragmented marine legislation poses challenges, lacking integration and coordination. The development of an environmental code34, expected by 2026, presents an opportunity to incorporate SBE principles and support policy coherence for sustainable marine development. A comprehensive governance system that integrates ocean economic sectors and conservation matters is crucial for advancing an SBE and addressing the complex, cross- cutting nature of marine issues.

Advancing China's Sustainable Blue Economy 2025