BRI success calls for high compliance standards

On the 10th anniversary of the Belt and Road Initiative, countries and regions tapping markets in the BRI are urged to strengthen their skills and recognize international compliance rules and local regulations to ensure they are up to scratch. Chai Hua reports from Hong Kong.

Aserious challenge confronting companies tapping markets in the Belt and Road Initiative is how to mitigate compliance risks.

And the key to making the grade is accepting and adopting the widely recognized rules and standards to boost cooperation among them.

The advice comes from Wang Zhile, a member of the Tenth Principles Expert Group of the United Nations Global Compact - a strategic initiative supporting enterprises committed to upholding responsible practices across a wide spectrum of businesses.

Wang spoke to China Daily in an interview as the BRI, which commemorates its 10th anniversary this year, continues to make significant strides in areas like inclusive cooperation, transparency, expansion, anti-corruption measures and green development. President Xi Jinping, who in 2013 launched the massive China-led infrastructure project that aims to stretch around the world, has emphasized that these areas are vital for the high-quality development of BRI projects.

Xi mooted the BRI to lift international cooperation, stressing on multiple occasions it's necessary to regulate the behavior of enterprises involved in the project and guide them to operate in compliance with legal standards.

At the opening of the Second Belt and Road Forum for International Cooperation in 2019, the president highlighted the importance of accepting and adopting widely accepted rules and standards in pursuing BRI cooperation.

"Few countries prioritize improving compliance operations to the extent that China does. This commitment is demonstrated by the attention given by top leaders and the implementation of regulations at the ministries and commissions," Wang says.

Wang is also head of the Beijing New Century Academy on Transnational Corporations and a former director of the multinational corporation research center at the Chinese Academy of International Trade and Economic Cooperation.

Major Chinese mainland firms with established compliance management systems should focus on fixing the problems that have emerged, he suggests. There's a need to beef up support for small and midsize companies to ensure they are able to operate in compliance with the required regulations.

Wang's advice for enterprises involved in the BRI markets is to prioritize economic principles and conduct feasibility investigations before entering a new region. "Enterprises should develop the ability to recognize their compliance duties required by international rules and local regulations."

As to what governments can do, he proposes setting up a specialized national committee to lead the overall development of Chinese companies' compliance operations.

Regarding the significance of compliance management, Wang referred to its definition and history. "Compliance" means that a company adheres to the applicable rules and laws. This includes both country-specific laws and requirements from the regulatory authorities, as well as internal company commitments. International corporations must abide by the laws and regulations of all markets in which they operate.