By intern reporter Han Wei

China's development strategy, with its traditional emphasis on low-cost exports, is transforming in a way that may point the country towards a socially responsible future.

Such a new direction would certainly please international development specialists such as Simon Zadek, chief executive of a London-Washington think tank called AccountAbility.

In an interview with Caijing, Zadek said China seems poised to move up the manufacturing value chain during its next growth stage while its companies seek more opportunities overseas. But Zadek, emphasized that “without addressing sustainability issues, that growth will be impeded.” The organization recently published its annual State of Responsible Competitiveness report in Chinese for the first time.

Sustainability encompasses sound business practices -- coupled with environmental protection, fair labor standards and social responsibility -- as important drivers for raising national and regional economic competitiveness. AccountAbility's report assesses these business habits in 108 countries, ranking nations according to responsible competitiveness, based on their ability to deliver social, environmental and economic improvements.

In the latest report, China ranked a relatively low 87th. AccountAbility said the country's current practice of responsible competitiveness remains weak by international standards.

But China is one of the world's economic growth engines, having risen to fourth in terms of GDP. And along with the nation's rising prosperity, an increasing number of China's major companies are embracing the concept of social responsibility.

As an example, Bank of China recently issued its first-ever report on corporate social responsibility. One of China's Big Four state-owned banks, it pledged to work harder at improving employee relations, protecting the environment and serving consumers.

Meanwhile, the country's largest mobile phone provider China Mobile said in a recent annual Corporate Social Responsibility Report that the company would shoulder more social and environmental responsibilities as part of its future development strategy.

China's first major corporate social responsibility report was issued in 2006 by State Grid Corp., an electric power distributor. A variety of other companies followed State Grid by incorporating responsible business practices into their development strategies.

These firms are the exception. Most Chinese enterprises are just learning how to perform as responsible global players managing the environment and acting in socially responsible manner. But Zadek said China's competition strategy is priming for changes. The country can no longer underpin its success by continuing a 30-year development path that relies on exports of cheap products, because the world is losing its ability to absorb more low-cost products.

Zadek thinks Chinese enterprises will play an important role in shaping global markets in the future. The country has seen the emergence of its first generation of multinationals with advanced technology in recent years, and an increasing number of Chinese enterprises now hope to tap international markets and become global players.

However, Zadek said these global market hopefuls must build sound reputations in responsible business practices if they want access to foreign market resources and fewer trade barriers.