The article examines how recent Chinese measures – including new State Council regulations on supply chain security and extraterritorial jurisdiction, and China’s August sanctions against the Responsible Business Alliance (RBA), a leading global due-diligence coalition – are placing companies operating in China in an increasingly difficult position.

Commenting on this evolving landscape, Joanna said companies should closely monitor the EU’s Corporate Sustainability Due Diligence Directive (CS3D) as its requirements take shape.  She also flagged the EU’s forced-labour import ban, under which a database of high-risk regions – likely to include Xinjiang – is expected soon, ahead of the Regulation’s entry into force in December 2027. She noted that companies should prepare for the possibility of sanctions against due-diligence support providers similar to the action recently taken against the RBA, and adjust their due-diligence mechanisms accordingly.

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Global firms in China face supply-chain data rethink as laws collide | MLex | Specialist news and analysis on legal risk and regulation