Comparative Analysis and Legal Reflection on the Boundaries of Human Rights Due Diligence in the Supply Chain

As global supply chains become increasingly lengthy and complex, human rights due diligence in the supply chain is becoming a controversial focal point in the accountability of multinational corporations. In recent years, legislative practices in the field of human rights due diligence have shown a trend from voluntary soft law toward mandatory hard law, and from corporate due diligence for their own operations towards extended due diligence for the entire supply chain. However, there is a divergence in national practices regarding the extent to which human rights due diligence should extend along the supply chain and the manner in which it should be incorporated into domestic legal policies. International soft law interpretations surrounding the boundaries of human rights due diligence in the supply chain are decentralized, posing risks of interpretation diversification, boundary blurring, and procedural formalization, as well as risks of misinterpretation and misuse. Meanwhile, some countries and regions are vigorously promoting mandatory legislation on human rights due diligence in the supply chain, which has profound implications for the stability of global supply chains and the international economic and trade order. Against this backdrop, it is crucial to explore the reasonable boundaries of human rights due diligence in the supply chain. Instead of applying a one-size-fits-all approach,the rationality of legal factors and the complexity of practical factors should be considered, applying context-specific measures based on the varying degrees of linkage between companies and negative human rights impacts in the supply chain. China should be particularly wary of the “chilling effect” of mandatory legislation on human rights due diligence in the supply chain, attaching great importance to national supply chain security and international supply chain competitiveness.Additionally,China should actively promote the implementation of voluntary human rights due diligence under the United Nations framework, and accelerate the enhancement of China's discourse power in the international rule-making process in the fields of industry and commerce as well as human rights.

Practice and Outlook of China's Regulation on the Extraterritorial Human Rights Responsibilities of Transnational Corporations

As China’s overseas investment and business operations continue to expand,the issue of human rights risks faced by Chinese transnational corporations abroad has attracted sustained attention from society.In recent years,China has enacted a series of laws,regulations,and policies to better regulate the overseas business conduct of transnational corporations,urging them to respect the human rights of the people in host countries and fulfill their social responsibilities to achieve sustainable development.Meanwhile,China has actively participated in the formulation of the Legally Binding Instrument on Activities of Transnational Corporations and Other Business Enterprises in International Human Rights Law,providing a Chinese solution to promote global governance of transnational corporations.However,in practice,the lack of institutional mechanisms,systems,and industry rules to supervise and guide transnational enterprises in fulfilling their human rights responsibilities,as well as the limited awareness of human rights risks among these enterprises,have resulted in ongoing human rights risks in their overseas business operations,particularly regarding labor rights and environmental rights.In response,China should take its national conditions into consideration and focus on the development trends of human rights issues in the business sector at the international level.Drawing on the experiences of other countries,China should explore and establish institutional and practical measures to regulate the human rights responsibilities of transnational enterprises through legislation,administration,and judiciary actions,in order to address the risks and challenges faced by Chinese enterprises in foreign investments and contribute to the sustainable development of the world and global human rights governance.