What drives West's policy toward China: human rights or industry?

EU and US align against China's state capitalism

20210405N Xinjiang cotton

German companies such as Adidas and Puma have been criticized for using Chinese cotton, the vast majority of which is made in Xinjiang. © AP

YASU OTA, Nikkei Asia columnist

TOKYO -- The decision last month by German Chancellor Angela Merkel's cabinet to approve the new Supply Chain Act undoubtedly sent a chill down the spines of German companies.

The law puts the onus on businesses to ensure their suppliers, even those outside the country, do not use forced labor, with harsh penalties for those that fail to properly conduct and disclose their due diligence.

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