A Study on Chinese Enterprises' Strategies to Address Environmental, Social, and Governance (ESG) Challenges under the WTO Framework: Based on the Specificity of the Chinese Market and the Adaptability of WTO Rules

Abstract

This study aims to examine the ESG challenges faced by Chinese enterprises within the context of the World Trade Organization (WTO). The research uses a systematic literature review to investigate how Chinese firms are integrating ESG strategies that align with both international standards and local policies. The findings highlight key challenges, including regulatory complexity, policy inconsistencies, and difficulties in balancing global ESG expectations with regional economic and cultural contexts. At the same time, Chinese enterprises have adopted innovative approaches such as customized environmental practices, proactive stakeholder engagement, and policy-driven sustainability initiatives to enhance compliance with WTO guidelines. While, regulatory frameworks provide both challenges and opportunities, government policies and economic incentives play a crucial role in facilitating ESG adoption. Additionally, the adaptability of ESG strategies is evident in how companies integrate sustainability into China’s unique economic structures and evolving policy landscape. These insights provide practical policy and corporate guidance for advancing compliance with ESG and contribute to institutional theory by showing how both formal regulations and cultural influences shape sustainable corporate behavior.