China / National law
China Company Law
Company Law of the People's Republic of China (revised 29 Dec 2023, Presidential Order No. 15)
In force2024-07-01Modified
Topic : Governance · Level : National
Today
In force since 1 Jul 2024. No ESG reporting duty or size threshold; Art. 20 only encourages CSR reports.
Summary
China's revised Company Law took effect on 1 July 2024. It asks companies to consider employees, consumers and the environment and encourages social responsibility reports. It sets no ESG reporting threshold or penalty.
Who is concerned
- Turnover
- non précisé
- Employees
- 300+ (employee director, LLCs, Art. 68)
- Listed company
- cotées et non cotées
- Sectors
- All sectors
- Triggering activities
- Incorporation as a company in China
- LLC with 300+ employees (board employee rep)
- Extraterritorial reach
- No
non précisé
- Examples
- Foreign-invested LLC in Shanghai
- Private manufacturer with 500 employees
- Listed company board
What the law requires
- Consider employees, consumers and environment in business (Art. 20)
- Seat employee director in LLCs with 300+ staff, unless supervisory board has one (Art. 68)
- Respect expanded duties of loyalty and diligence (Art. 180)
Penalties
No ESG-specific fines. Directors and senior managers liable to third parties for intentional or grossly negligent harm (Art. 191).
SUPPLIER INTELLIGENCE
What this changes for a supplier in China
No direct reporting duty. Art. 20 gives a legal basis to stakeholder and environmental considerations and voluntary CSR reports.
Expected evidence
- Voluntary CSR or ESG report
- Board composition (employee director)
- Corporate governance documents
Tiers : Tier 1
Consulting