#122 What China’s New Security Regulations Mean for EU Sustainability Laws

China’s new supply chain rules could make it harder for European companies operating in the country to look into human rights risks. So how can they still carry out effective due diligence?

In this episode of the Frankly Speaking podcast, Richard Howitt was joined by Katja Drinhausen, Head of Programme Politics and Society at the Mercator Institute for China Studies (MERICS).

Together they discussed China’s new regulations on supply chain security and countering the undue exercise of extraterritorial jurisdiction, and what they could mean for European and other international companies carrying out human rights and environmental due diligence in China. You’ll also hear more about:

• The growing tension between Chinese regulations and European and US requirements on forced labour and supply chain due diligence

• How the new rules could make it harder for companies to gather information and conduct audits in Chinese supply chains

• How China’s approach to ESG and social responsibility differs from European approaches, particularly when it comes to human rights, independent oversight and civil society participation

• Whether Chinese due diligence and sustainability initiatives can provide alternatives to international tools and standards

• Katja’s advice to companies on how they can continue conducting responsible due diligence in China while also protecting both workers and those carrying out investigations

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