The People’s Republic of China has announced new guidelines called Guidelines on Corporate Social Responsibility Compliance for Foreign Invested Enterprises (CSRCFIE), suggesting that foreign companies operating in China may be required to incorporate CSR initiatives into their normal business operations. The new guidelines were announced by the Chinese Academy of International Trade & Economic Cooperation, a subsidiary of China’s Ministry of Commerce.

Commentary: The CSRCFIE remains a series of guidelines, rather than required actions. However, there is a good chance that these guidelines will become law in the near future. At the very least, it gives a sign that a business may have a competitive advantage when dealing with the Chinese government if they take these new guidelines to heart.