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up of environmental and social standards, and to finding collective solutions in the process ofeconomic globalization.3.1. Chinese overseas construction of damsDam construction is a centerpiece of environmental and social controversy surroundingChinese investment. Chinese dam builders and financiers account for 75% of world’s damsbeing built, mostly for electricity generation. One workshop participant shared that Chinesedam builders are in general willing to take high environmental, governance and geographicalrisks for projects. They have however not been very open to interaction with civil societies,but have been adaptive and quick at learning to engage with NGOs. Some organizations havemade great efforts in collaboration with the host countries and Chinese NGOs to engage indialogue with Chinese dam builders, who have invited NGOs to provide input andrecommendations to their environmental policy-making including assessment of sensitive andhigh-risk projects. It has welcomed most recommendations and even withdrew from projects.From the companies’ perspective, one should recognize the projects’ significant contributionto the host country’s economic development as well as the economic cost of adopting higherstandards. Since the environmental and social management standard is tied closely to theeconomic development status of the host country, it will be challenging to impose oneinternational standard across all countries. Some companies will adopt the higher standardbetween the host country and China. As a result, the environmental performance is oftenbetter overseas than in China. In addition, since the environmental standard will directly affectthe cost of projects, a higher standard might not generate the optimal results as it sometimesprevents project development that is urgently needed.On-the-ground outcome varies not only across host countries but also across companies. InNepal, Chinese dam builders are heavily involved in the hydropower construction. Nepalneeds 1200 MW generating capacity to deal with the regular blackouts in Kathmandu duringdry seasons. Currently two projects are under construction by two Chinese hydropowercompanies. Both projects raise significant concerns among local communities and NGOsabout their environmental impacts and how risks are managed. The lack of institutionalmanagement of Nepalese government has caused public boycotting the two projects.Although one company has excellent safety standard and community engagement programs,it would not interfere with the sovereignty of the host country by adopting higher internationaldam standard that is not accepted by the Nepalese government. Local benefits sharing is alsopresent – the project will go public on the stock exchange and offer 10% to local people, sopeople have equity in this project. This system can be improved with a more established socialstructure.A few lessons came across among speakers focused on the dam issue. Top Chinese TNCswant to maintain a good reputation, being it because they are seen as actors of the Chinesestate or care about their corporate image. Chinese hydropower companies are also nothomogeneous representatives of the Chinese government even though they are all stateownedenterprises (SOEs). There can be trade-off between economic development,consumption and environmental sustainability. A more optimal outcome will require3