By Aurora Lane | 2024-08-29

LA PAZ -- China has admitted to facing environmental and human rights challenges in its overseas business operations.

The move comes after a long history of Chinese intransigence in response to host-country complaints.

Beijing has accepted 10 out of 11 recommendations from other countries during the 4th Universal Periodic Review (UPR) by the United Nations (UN), according to a statement by the Collective on Chinese Financing and Investment, Human Rights, and Environment (CICDHA) published on August 13.

The UN Human Rights Council describes the UPR as a "unique mechanism" requiring each UN member state to undergo a peer review of its human rights record every four and a half years.

China's UPR coincides with the 10th anniversary of the Belt and Road Initiative (BRI). According to the statement, it represents "China’s most ambitious policy" for financing and building infrastructure globally.

A hundred and fifty countries are participating in the BRI.

In China's UPR session in January, 161 states put forward 428 recommendations, many of which centered on the environmental and human rights impact of Chinese business activities abroad.

More than 200 civil society organizations submitted detailed reports across various sectors, including CICDHA.

From Latin America, CICDHA advocated for the rights of communities impacted by "Chinese investments and business activities abroad."

Among the recommendations China accepted, those from Costa Rica and Portugal stand out, urging the incorporation of the right to a clean, healthy and sustainable environment into Chinese law.

"Chile and Spain recommended that China ensure a safe environment for human rights defenders -- a crucial step given the history of Chinese companies' inadequate due diligence on environmental and human rights issues in Latin America," the CICDHA statement said.

Mexico, Ecuador, Peru and Cameroon urged Beijing to implement measures ensuring that its companies and financial institutions respect human rights in their overseas operations.

"The absence of accessible and effective mechanisms has hindered affected communities from filing complaints and seeking reparations for damages caused by Chinese companies and banks in the region," said Sofía Jarrín of the Alliance of Human Rights Organizations of Ecuador.

Shirking environmental requirements

Many Chinese investments in Latin America have faced criticism for consistently inadequate or absent environmental impact assessments of their projects.

CICDHA suggested that to enable timely dialogue on environmental and social risks, impacts and conflicts, "Chinese embassies in Latin America should serve as formal communication channels between civil society organizations and Chinese stakeholders -- businesses, financial institutions and government entities."

A report by CICDHA last November found that 10 of 28 projects analyzed in Latin America were missing comprehensive environmental assessments, significantly impacting local communities.

CICDHA, based in Latin America, advocates for the rights of communities impacted by Chinese investments and business activities abroad, emphasizing the importance of addressing these challenges at the multilateral level.

According to CICDHA, China's acceptance of the 4th UPR recommendations signifies an acknowledgment of the social and environmental issues linked to its investments in Latin America.

"We hope China's acceptance of this recommendation will lead to more rigorous environmental assessments that effectively involve affected communities," said Lucio Cuenca, director of the Latin American Observatory of Environmental Conflicts (OLCA) in Chile.

China's readiness to address these issues also validates the concerns of affected communities and civil society organizations in Latin America, which have highlighted the negative impacts of Chinese investments in the region to the UN since China's 3rd UPR in 2018.

"China's acknowledgment of these issues is a crucial step toward greater accountability and transparency," said Paulina Garzón, director of Sustainable Latin America (LAS).