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    1. Home
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    3. >Human rights claims undermine China’s investment abroad, report finds
    Investing

    Human Rights Claims Undermine China’s Investment Abroad, Report Finds

    Published by maria gbaf

    Posted on August 11, 2021

    2 min read

    Last updated: February 17, 2026

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    This image depicts a Chinese mining site, illustrating the human rights allegations linked to China's overseas investments, especially in the metals sector. The article discusses how these issues impact China's reputation as a responsible global investor.
    Chinese mining operations highlighting human rights issues in investment abroad - Global Banking & Finance Review
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    Tags:sustainabilityHuman Rightsextractive industriesrenewable energycorporate social responsibility

    China's Global Investment Efforts Undermined by Human Rights Issues

    (Reuters) – China’s efforts to be seen as a responsible investor overseas are at risk from high rates of human rights abuses linked to its business operations, especially in the metals and mining sector, a report released on Wednesday found.

    The Business & Human Rights Resource Centre, a global nongovernmental organisation (NGO), logged 679 charges of human rights abuse against Chinese companies operating abroad between 2013 and 2020.

    Metals and mining drew the most allegations – 236, or 35% of the total. Peru, the world’s second-biggest copper producer, and China’s neighbour Myanmar, a leading supplier of tin and rare earth ore, were named as hotspots.

    China, the world’s top metals consumer, does not have enough resources to meet domestic demand and has encouraged companies to secure supply by purchasing assets overseas.

    It has also extended its renewable energy reach, with a pledge to build a green Belt and Road infrastructure initiative as it seeks to meet climate goals.

    “Over one third of the allegations against Chinese mining businesses overseas were related to prolonged conflicts between large China-backed multinational mining companies and local communities in Latin America and Papua New Guinea (PNG),” the report said.

    State-run Chinese firms are involved in producing gold, nickel and cobalt in PNG.

    The report cited problems in supply chain due diligence by Chinese firms despite “proactive efforts” from the China Chamber of Commerce of Metals, Minerals and Chemical Importers and Exporters (CCCMC).

    Sun Lihui, director of the CCCMC’s development department, told Reuters many downstream Chinese companies had good human rights policies, but did not always focus their efforts where they were most needed.

    “They only attach importance to disciplinary investigations but neglect to give training and guidance to companies in their supply chain,” he said.

    After the mining sector, the second-highest number of allegations – 152 – was for the construction sector. They included lost livelihoods linked to a rail project in Laos.

    The fossil fuel and renewable energy sectors also drew criticism, with 118 and 87 allegations, respectively, the report said, adding the vast majority of the renewable energy complaints related to hydropower projects.

    Across all sectors, Myanmar saw the most allegations of any country with 97.

    Graphic: Human rights allegations against Chinese firms by region https://fingfx.thomsonreuters.com/gfx/ce/zgvomwgwjvd/rights.png

    (Reporting by Tom Daly; editing by Barbara Lewis)

    Frequently Asked Questions about Human rights claims undermine China’s investment abroad, report finds

    1What organization logged human rights abuse charges against Chinese companies?

    The Business & Human Rights Resource Centre logged 679 charges of human rights abuse against Chinese companies operating abroad between 2013 and 2020.

    2Which sector had the highest number of human rights allegations?

    The metals and mining sector drew the most allegations, with 236 charges, accounting for 35% of the total.

    3What challenges do Chinese firms face regarding supply chain due diligence?

    The report cited problems in supply chain due diligence by Chinese firms, despite proactive efforts from the China Chamber of Commerce of Metals, Minerals and Chemical Importers and Exporters.

    4Which country saw the most allegations against Chinese firms?

    Myanmar saw the most allegations of any country, with a total of 97 reported cases.

    5What are some sectors besides mining that faced human rights allegations?

    The construction sector had the second-highest number of allegations, with 152, while the fossil fuel and renewable energy sectors also drew criticism, with 118 and 87 allegations, respectively.

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