GUANGZHOU Event report

[Sourcing committee] Dealing with new conflicts of law for supply chain due diligence

On June 30, 2026, CCI FRANCE CHINE hosted a Sourcing Committee session at its Guangzhou office, gathering members for a strategic review of recent supply chain regulatory shifts.

The session featured a legal presentation by Mr. Vivian Desmonts from Gowling WLG, who provided expert guidance on two new Chinese regulations enacted in April 2026.

The discussion focused on three key areas:

• New compliance obligations: Certain actions—such as terminating supplier relationships, conducting supply chain audits, or complying with foreign due diligence requests—may now be subject to Chinese law review, with potential consequences including investigations and trade restrictions.
• Conflicts of law: Multinational sourcing operations face growing tension between local requirements and home country regulations (such as EU due diligence rules). The new framework may impose countermeasures on foreign companies that terminate business relationships with partners on sustainability or compliance grounds.
• Protecting local teams: The regulations introduce potential personal liability for individuals in China, including fines, visa restrictions, and data transfer prohibitions.

Following the presentation, a roundtable allowed sourcing and supply chain professionals to share specific operational challenges encountered since the regulations took effect.

The key takeaway: with geopolitical tensions increasingly manifesting as legal risks, companies must carefully review supplier contracts, audit protocols, and establish internal monitoring mechanisms. While implementation details remain unclear, proactive engagement is essential for compliance and resilience.

We would like to extend our sincere thanks to Ms. Vivian Desmonts from Gowling WLG for her expert guidance, and to all participating members for their active contributions.