China has reduced its dependence on trade in natural resources, according to a report published Tuesday by the Hinrich Foundation and the International Institute for Management Development (IMD).
The report shows the results of the Hinrich-IMD 2025 Sustainable Trade Index (STI). At the top of the table, in descending order, were the United Kingdom, New Zealand, Australia, Singapore, and South Korea.
Trade in natural resources
Emerging economies are moving toward selective modernization. They are achieving specific environmental improvements but still maintain a development model that is dependent on carbon and natural resources.
China clearly illustrates this trend. It has reduced its dependence on trade in natural resources from 13.3% to 5.6%. It has also improved wastewater treatment. However, it continues to face the environmental effects of its manufacturing-driven export economy.
India is following a similar path. It has significantly reduced wastewater discharge and its dependence on natural resource exports. In doing so, it is sending a clear signal to global markets: its export structure is becoming more sophisticated.
Overall, both economies are confident that technological innovation and industrial modernization will generate real environmental benefits without slowing their economic growth.
China is reducing its dependence on trade in natural resources by expanding technology industries, improving wastewater treatment, and diversifying its exports toward advanced manufacturing, thereby reducing the share of raw materials in its export economy.
Advanced economies
The data show that a country’s level of development defines its approach to environmental sustainability. It determines its priorities and also its capacity to act.
Advanced economies adopt decoupling strategies. They seek to maintain or increase trade while reducing their environmental impact. Japan is a clear example. It achieves almost total wastewater treatment and lowers its per capita carbon dioxide emissions from 8.61 to 7.54 metric tons.
The United States and the United Kingdom are following the same path. Both have reduced their dependence on natural resource exports. In addition, the United Kingdom has reduced its per capita emissions. These advances point to a transition toward higher-value, lower-resource-use business models, a sign of maturity for developed economies.