International Labor Standards and Corporate Due Diligence in EU-China Economic Relations

Abstract

This thesis examines the relationship between International Labour Standards (ILS) and corporate due diligence in EU-China economic relations. It analyses the evolution of labour governance from a state-centred model to a supply chain-based regulatory framework, focusing on the labour provisions of the EU-China Comprehensive Agreement on Investment (CAI) and the EU’s mandatory Human Rights Due Diligence (mHRDD) regime. The study adopts doctrinal, comparative, and institutional analysis to explore the legal implications of this transformation. It finds that the EU increasingly relies on corporate due diligence to implement labour standards beyond traditional inter-state mechanisms. While this approach strengthens the protection of labour rights, it also creates significant compliance challenges for Chinese enterprises. The thesis concludes that China should improve domestic labour standards while pursuing a balanced and inclusive approach to global labour governance.