China’s supply-chain security rules complicate ESG audits and forced-labour diligence
Sidley says China’s Regulations on Industrial and Supply Chain Security took effect April 7 and create new scrutiny for activities perceived to disrupt China-linked supply chains.
BY ESG DESK · JUNE 19, 2026 · 1 MIN READ
Sidley says China’s Regulations on Industrial and Supply Chain Security took effect April 7 and create new scrutiny for activities perceived to disrupt China-linked supply chains. The update specifically warns that ESG audits, forced-labour inquiries, detailed supply-chain mapping, facility audits and data collection for foreign regulatory purposes may require careful scoping and guardrails. Supply-chain due diligence is becoming a conflict-of-laws problem. Counsel advising multinationals need to reconcile CSDDD, forced-labour, sanctions and customer requirements with China countermeasures, data-flow restrictions and local personnel risk.