New report examines ESG due diligence readiness in China’s supply chains
The China National Textile and Apparel Council (CNTAC), with the full support of amfori, has published a new report under the Responsible Chain in Motion initiative, titled “Chinese Supply Chain Enterprises in the Context of Due Diligence Legislation: Challenges, Awareness, and Preparedness”.
The report takes a closer look at how textile, apparel and light industry supply chain companies in China are responding to the fast-evolving landscape of human rights and environmental due diligence legislation. It brings greater clarity to current levels of awareness, preparedness and practical challenges across suppliers in China in the face of emerging ESG due diligence regulations, such as the EU’s Corporate Sustainability Due Diligence Directive (CSDDD).
Key findings: awareness and capability gaps
The research, covering more than 20 brand companies and 230 suppliers, reveals three distinct due diligence models among brands:
- Proactive compliance
- Proactive response
- Reactive response
While suppliers demonstrate strong willingness to engage in ESG due diligence, their current capabilities still have shortcomings. At the same time,increased awareness directly drives responsible action. Survey data shows that companies that have read the due diligence legislation provisions are 4.66 times more likely to conduct sustainable risk assessments than those that have not.
These research findings will lead the Responsible Chain in Motion initiative, which will promote the industry’s transition from awareness to action through systematic training and tool empowerment.
Report launch and industry dialogue in Shanghai
The report was officially published during the launch event of the “Responsibility-Participation-Prosperity: Launch event of the Responsible Chain in Motion initiative for textile and apparel industry” on 11 March 2026 at the National Exhibition and Convention Centre in Shanghai.Representatives from international organisations, brand companies, suppliers, and industry associations gathered to engage in in-depth discussions on global trends in supply chain due diligence, local practices, and collaborative governance, and to jointly witness the official launch of the initiative.
During the event, Linda Kromjong, amfori President, shared in her video address that ESG requirements are rapidly evolving and that audits only hold true value when integrated into a comprehensive due diligence management system. She reiterated amfori’s full support for the Responsible Chain in Motioninitiative and emphasised that collaboration is a pragmatic path to reduce duplicative efforts and focus on high-risk areas.
Dr Xiaohui Liang, Chief Researcher at the Office for Social Responsibility of the CNTAC and amfori’s Stakeholder Advisory Committee member, delivered the opening remarks. He explained that the Office for Social Responsibility of the CNTAC has been continuously advancing the promotion of social responsibility and supply chain due diligence, including the development of the CSC9000T system and guidelines for social and environmental due diligence. The Responsible Chain in Motion initiative is a continuation of these efforts, aimed at providing a solid foundation for building a collaborative governance ecosystem of responsibility within the industry.
During the keynote session, Hong Lee, Director East Asia & Pacific at amfori, delivered a speech titled “Partner collaboration to co-create a responsible textile and apparel value chain.” He noted that companies are not unwilling to act but are hindered by unequal access to information and inconsistent standards. He called for translating regulatory language into corporate language, transforming compliance pressure into governance capabilities, and converting value chain collaboration into actionable working mechanisms.
Taken together, the report offers a timely look at how ESG due diligence is being understood and applied across textile, apparel and light industry supply chains in China. It shows that supplier willingness is there, that awareness makes a measurable difference, and that the next step lies in equipping companies with the tools and knowledge to act more effectively. For amfori, that marks a useful contribution to wider efforts to build resilient, responsible supply chains through collaboration and actionable solutions.