Recommendations for Implementation of China’s New National Human Rights Action Plan

A shorter version of this blog appeared in South China Morning Post as a Letter to the Editor here.

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In June, China released its fifth consecutive National Human Rights Action Plan for 2026-30. For the first time, the Action Plan devoted a whole section to business and human rights, setting out the state’s commitment to guide and support Chinese enterprises in abiding by the UN Guiding Principles on Business and Human Rights and fulfilling their human rights obligations at home and abroad.

The explicit inclusion of Chinese overseas investments in Belt and Road partner countries and beyond is significant and applaudable. The Action Plan notably encourages Chinese enterprises operating overseas to comply with local laws and facilitate the sustainable development of the local environment. The test of any plan of this type will be in its implementation. In that regard, we hope that China will seize the opportunity to strengthen existing complaints mechanisms and create new ones, thus ensuring its overseas investments are good for people and the planet.

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Complaints Channels Address Unintended Harms of Cross-border Investments

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As advocates for communities negatively impacted by investments from multilateral development banks and other financial institutions, we at Accountability Counsel know that cross-border investments of all types – even those labelled as “green” or intended to support positive development outcomes – can result in unintended negative environmental and social impacts. Even when companies conduct due diligence and abide by local regulations, issues and corresponding harm can still arise. 

We have advocated alongside local and Indigenous communities who have been evicted from their homes without consultation or compensation to make way for mining, infrastructure, and energy projects, communities whose water sources have been polluted by seepage from tailing dams containing mining waste, and human rights defenders who face threats and persecution for seeking to improve or stop projects.

Our advocacy experience shows that too few channels exist for local defenders to reach institutional decision-makers when corporate and government actions risk harming their lives, livelihoods, and environments. But, when those channels do exist, they can be transformative. Over the past 30 years, local communities have raised environmental and social concerns in over 2,400 submissions to cross-border complaints mechanisms situated within financial institutions, companies, and government agencies. That body of cases reveals that complaints handling mechanisms are critical tools that ensure that promises on paper are being implemented in practice. They can be effective tools for companies and investors to hear about - and proactively address - emerging tensions and issues directly from communities, build trust with local stakeholders, and ultimately facilitate the social license to operate. 

We therefore welcome the news that the Chinese government will not only encourage, but also commit resources and support to Chinese enterprises to formulate and release policies on fulfilling social responsibilities, assess operational and supply chain risks, and – crucially – improve complaints handling mechanisms.

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Action Plan Implementation through Strengthening Complaints Handling Mechanisms

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As implementation of the Action Plan commences, we hope that it will include the further development and strengthening of two ongoing initiatives to implement complaints handling mechanisms.

First, the government should continue to support the first-of-its-kind mediation and consultation mechanism (the “Mining Mechanism”) set up by the China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exports (“CCCMC”), China’s main mining industry association. The Mining Mechanism accepts complaints from people and organizations concerned about negative social and environmental impacts of Chinese mining projects abroad. It seeks to facilitate a mediation process, with the help of third party mediation experts if necessary, to solve the issues. The Mining Mechanism was set up in 2023 through a collaborative effort that included input from civil society organisations, like Accountability Counsel, with experience in designing accountability processes.

If done right, the Mining Mechanism will help fulfill China’s ambition as a leader in green mining. As the Mining Mechanism starts handling its first cases received from affected communities, we (1) call for adequate staffing of and financial resources for the Mining Mechanism’s cases processes; and (2) encourage Chinese mining companies to voluntarily and constructively participate in the Mechanism process.

Second, the government should publish implementation criteria for the 2022 Guidelines for Green Finance in the Banking and Insurance Industries, requiring all Chinese banks and insurers to manage environmental, social and governance (ESG) risks, including by establishing complaints handling mechanisms for affected communities. This could take the form of a collective industry-wide mechanism run by the National Financial Regulatory Administration, or of individual mechanisms hosted by each financial institution that meet the UNGP’s criteria for effectiveness. 

As the Chinese government considers these implementation steps, they can build on existing guidance. The Action Plans envisions engagement and cooperation with international stakeholders. Complaints handling mechanisms at other international financial institutions have created bodies such as the Independent Accountability Mechanisms Network to exchange expertise and facilitate capacity building. UN bodies such as the UN Environment Programme Finance Initiative provide ready-made practical toolkits to member financial institutions to help them align their practices with the UNGPs. Nascent complaint mechanisms in China and the institutions responsible for overseeing them can avail themselves of these resources. 

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Strengthening and implementing the Mining Mechanism and complaints mechanisms at financial institutions are the key to assuring that the National Human Rights Action Plan is meaningfully put into practice. People closest to an issue have unique expertise on how to address it. If they have trusted channels for sharing their advice to decisionmakers, then the Chinese government’s newly enshrined human rights ambitions are more likely to meet their mark.