China’s green transformation through eco-industrial parks

China has achieved remarkable results in green transformation through the implementation of eco-industrial parks (EIPs). Why China chose EIPs as the main vehicle for green transformation? How did it do? Do the EIP interventions also contribute to the economic competitiveness? Most existing studies so far have revealed that EIPs can improve the environmental performance, however, few studies examined their impact on economic competitiveness. This paper intends to systematically analyze China’s EIP programs, and examine whether the EIP interventions have improved both their environmental and competitiveness performances as well as the correlation of these two dimensions, through empirical studies based on multiple data sources. The results largely verify the effects of both environmental and competitiveness improvements. Further correlation analysis based on a small sample, however, shows there exists a more complex relationship between competitiveness performance and environmental performance. The paper also identifies the key lessons learned in implementing China’s green transformation strategy through EIPs. The authors challenge the conventional wisdom that investing in green technologies and ensuring compliance with eco-industrial standards often leads to cost increases and loss of economic competitiveness for both individual firms and industrial zones as a whole. The findings strengthen the evidence base for Chinese policy-makers and the business case for entrepreneurs when considering green investments.