andtheUnitedNationsGuidingPrinciples on
Business andHumanRights(UNGPs). These
policies offer astructurearoundwhichyour
organisation canbegintobuildarobust
frameworkfor duediligenceinbusinessethics.Miti gation
Thecomplexityofhuman rightsissues in
Chinaissuchthatstandardduediligence
practices areunlikelytobeenoughinthisarea.
Keepingupwithcurrent affairs andpolitical
policywill helpyouidentifywhichareasofthe
Chinesemarket andbusinessmaybeariskto
you. Be preparedto reactswiftly to emerging
issuesthat mayimpactyouroperations,while
beingaware that organisationsthat speakout
publicly againsthuman rightsriskcensure
fromtheChinese authorities.
Oneofyourbestdefencesistobe
transparent aboutallthestepsyouaretaking
to maintain ethicalpractices sothat,if issues
arise,youcan demonstratethatyouhavebeen
actingin goodfaith.
Business ethics maybeoneof themost
complicatedareas whenit comestodue
diligence,but this should not putyouoff at
theoutset. With adedicationto transparency
andathoroughunderstandingofyour
product andpartners, manybusinesses will be
able to successfullyand ethicallynavigatethe
Chinesemarket.Toreadanexpandedversion ofthis
article,visitchina.theweek.co.ukC
hina’s unique history,culture
andpoliticalsystemmakeita
different prospecttothe
Westernmarketsthatmany
companies will bemore usedto
operatingwithin. The
relationshipbetweengovernment, business
andmilitary is sometimes blurred,andtheUK
governmenthas raisedseriousconcernsabout
China’sreportedhuman rightsviolations.
OrganisationsoperatinginChinaneedto be
particularly vigilantintheareaof business
ethics to avoidinfringingUKorinternational
lawandtheseriousreputational damage
causedto companiesconnectedtohuman
rightsabuses.
BroughttoyoubyMilitary-Civil Fusion
TheChinese authoritiesoperateaMilitary-Civil
Fusion(MCF)policythatseeksto modernise
themilitary andenhance itstechnologyby
blurringthelines betweencivil andmilitary
research.UnderMCF,productsaforeign
companydevelopsor shares in collaboration
with aChinese partnercould theoretically be
repurposedformilitary usewithouttheforeign
partner’s consent,whichcan leadto legal
issues andreputational damage.
ToavoidfallingfouloftheMCF, youneed a
comprehensiveunderstandingofyour
technology,particularly its‘dual-use’potential.
Applyfor theappropriate export licenses and
consulttheUKexport authoritiesif aproduct
seemslikelytobesubjectedto UKStrategic
Export Controls.Youshould alsoinvestigate
therecordandpolicies ofpotentialChinese
partners–networksliketheChina-Britain
Business Council(cbbc.org)andtechUK
(techuk.org)canhelp putyouin touchwith
reliable China-basedcontacts. Visitthe
UKgovernment’sDigital andTechChina
website(gov.uk/ digitalandtechchina)for
more guidance.Humanrights
Yo uare likelytobeaware of someofthe
concernsregardingChina’srecordonhuman
rights.Dueto thecomplexityandoccasional
opacityoftheChinesesystemandsupply
chains,itmight notalwaysbeimmediately
obviouswhenyouroperationsin Chinaare
intersectingwith these issues.
Yo urability to recognisethese riskswill be
bolsteredbyanawareness andunderstanding
of UK andinternational humanrightslawsand
guidelines suchas theUK’sModernSlavery ActADVERTISEMENT FEATUREOO gannisationsoopeerratinginChinaneedtobe particular lyvigilant in theareaof business ethicsto avoid infringingUK or internationallawand seriousreputational damageNavigating businessethics in ChinaWhy vigilance and transparency are keytooperatingsuccessfully in the world’ssecond-largest economy