Business and Human Rights in China: An Overview of Policies and Laws on Chinese overseas investment

Since China announced the “One Belt, One Road” in 2013, its foreign direct investment has become the second largest in the world, but there are growing concerns. Against this backdrop, this study aims to summarize China's foreign investment-related policies and regulations in the context of business and human rights, and examine whether China can achieve sustainable development. It also attempts to suggest a solution by highlighting the inconsistencies between the political and legal frameworks and practice. China has proposed policies for practicing business and human rights, but they have not been systematic and comprehensive. In addition, a series of legal regulations and guidelines have been issued for Chinese companies operating overseas, but most of them are of low utility and lack of specificity, raising international concern. Little effort has been made to further strengthen these norms and guidelines or to ensure their implementation. Chinese companies' awareness of these standards is still low, and there is a lack of social influence to ensure that companies take responsibility and respect human rights. This paper proposes that the Chinese government integrate a human rights-based approach into its national development policy. China needs to develop a national action plan on business and human rights or include a specific chapter on business and human rights that clearly references the UN Guiding Principles and other key international frameworks relating to BH, and make sure that the legislative process includes broad public consultation. The government must examine current laws and regulations relating to responsible business and look for gaps and inconsistencies with international standards and China’s policy commitment on promotion of human rights. Furthermore, it should take appropriate legislative and administrative measures to ensure accountability and legal liability for Chinese companies and their subsidiaries abroad when they engage I human rights abuses. The government should designate relevant government department and financial institutions raise awareness and increase capacity building on BHR issues and applicable national and international standards in the field of human rights, labour, social security, health and environment in both China and host countries. Finally, China should encourage multi-stakeholders engagement in different responsible business initiatives by advancing different levels of dialogue that involves both international and domestic civil society organizations and advocates and respect for freedom of expression of human rights defenders who aim to hold the companies and relevant actors accountable.