"Report of the Independent Expert on the effects of foreign debt and other related international financial obligations of States on the full enjoyment of all human rights, particularly economic, social and cultural rights on his mission to China", 1 Mar 2016

The report of the country visit of the Independent Expert to China focuses on the regulatory frameworks, safeguards and policies adopted by China, its main international lending institutions, and newly established multi-lateral development banks headquartered in China to prevent negative human rights impacts in outbound investment.  

China has become a key player in providing funds for South-South cooperation and long-term financing for sustainable development to its partner countries. Development projects supported by Chinese financial institutions have brought benefits, but some projects have caused adverse environmental, social and human rights impacts to affected individuals and communities.

The report notes that there have been several efforts within China to address environmental and social impacts. However, a comprehensive framework for ensuring respect for and protection of human rights in international lending and outbound investment is still lacking. Additional efforts are needed to strengthen the implementation of existing guidelines in operational practices, to improve consultation with affected individuals and communities, and to enhance the responsiveness of financial institutions to their concerns. This includes ensuring that affected persons enjoy effective remedies for potential human rights abuses. In addition there is a need for more transparency.

Business enterprises implementing projects abroad and financial institutions funding their projects should establish accessible operational-level grievance mechanisms and independent complaints mechanisms.  China should also adopt appropriate legislative and administrative measures to ensure accountability and legal liability of Chinese companies and their abroad subsidiaries for potential human rights abuses...