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Article

16 May 2016

Author:
Mimi Zou, Chinese University of Hong Kong [in South China Morning Post]

China must set ethical standards for its Belt and Road investments

Mimi Zou says Hong Kong, if not Beijing itself, should seize the opportunity to take the lead, given its reputation in corporate governance and the protection of human rights…Belt and Road Summit in Hong Kong will take place on Wednesday…The Belt and Road aims to foster economic connectivity between China and over 60 countries in Asia…controversy has been growing over its social impact on host countries…in countries where the governments are unwilling or unable to assume their responsibilities. Chinese firms investing in these countries have been accused of engaging in poor labour, safety and environmental practices, bribing government officials and violating human rights.

The conduct of Chinese state-owned enterprises and private firms investing along the Belt and Road is likely to be subject to ever increasing international scrutiny…Indeed, unfavourable consequences for China’s image have already prompted Beijing to introduce regulations, guidelines and policies to govern the conduct of Chinese firms investing abroad. A handful of corporate social responsibility schemes and codes of conduct have also been adopted by Chinese firms and industry groups…How [China] will shape the governance of labour, safety and environmental standards on a global scale is a critical issue. The failure of the Hong Kong summit to address these critical issues is a regrettable omission…