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Supply Chain Due Diligence – Implications for European Business in China



In early March, the European Parliament approved a proposal for the EU Directive on Mandatory Human Rights, Environmental and Good Governance, this new legislation is expected to be approved by 2022. Two months after the European Commission unveiled its plans to reduce dependency on China and other foreign suppliers in six strategic areas like raw materials, pharmaceutical ingredients and semiconductors and proposed new tools to reduce the EU’s reliance on China on 137 imported products used in sensitive ecosystems, mainly raw materials and pharmaceuticals and other products that are key to fulfill the bloc’s green and digital goals.

In the meanwhile, a supply chain law that is recently passed by the German Parliament is likely to exert far-reaching consequences not only for German-registered firms but also for smaller companies across the EU and globally that sell products into the German market.

Similar to the EU and Germany’s latest legislative efforts to restructure supply chains, President Biden’s plan to restore the US supply chains reflect America’s endeavor to address existing vulnerabilities throughout the supply chain and develop long-term broad-based resilience.

What does all of the above actions mean to the European business operating in China and how should multinational enterprises react? The European Chamber is delighted to invite a diverse group of stakeholders, Ms. Agatha Kratz, Associate Director, Rhodium GroupMr. Sean Stein, Senior Advisor, Covington & Burlington LLP and a guest speaker from Federation of German Industries (BDI) to discuss the US, the EU and Germany’s recent discussion and decisions on supply chains and the potential implications on the European business in China.

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