China law puts fashion brands in compliance bind

BEIJING – A new Chinese law that recently came into force with no transition period is creating an unprecedented compliance dilemma for fashion brands: the activities now legally required under Western supply chain legislation may simultaneously constitute a violation of Chinese national security law.

The conflict with Western legislation is direct. Conducting ESG, forced labour, or supply chain audits in China to comply with the EU CSDDD or US UFLPA directly conflicts with Decree 834 – and for fashion brands, the stakes are particularly high.