On November 29, the US-China Business Council (USCBC) hosted Senior China and Northeast Asia Analyst Julia Coym of Control Risks, who provided a briefing and updates to USCBC member companies on the impact of recent environmental enforcements on manufacturing facilities and supply chains in China.
The closure of thousands of factories – including those operated by or supplying to US companies – in recent months highlights that environmental enforcement in China is intensifying, increasing operating costs and disrupting operations and supply chains. This is happening in a context characterized by rising professionalism, effective information sharing and strong commitment to environmental protection by both authorities and civil society.
The rules and regulations are evolving at a steady pace and enforcement is tightening. This is exposing foreign companies operating in China and their China-based suppliers to greater operational and reputational risk. Businesses need to get in front and stay ahead of environmental policy and regulatory and enforcement trends.
-The rules, the players, the financial and operational exposure of your business
Why are things changing?
-New generations of leadership and regulatory professionals, strong consensus on urgent need for stronger environmental protection
How to prepare?
-Know your local authorities, understand your sector and your supply chain, assess your real risk
How to stay ahead?
-Supply chain risk assessment, government engagement, proactive communications, community engagement, associations