Ethical Sourcing from China: What UK Businesses Need to Know

China city skyline with traditional Chinese rooftops in the foreground
June 2, 2025

As global supply chains evolve and consumer awareness increases, sourcing products from China ethically has become not just a moral imperative but a business necessity for UK companies. With China continuing to be one of the UK's largest trading partners—UK-China trade reached £87.2 billion in 2024—getting ethical sourcing right is more important than ever.

 

Building more resilient and stable supplier relationships

This comprehensive guide explores how UK businesses can navigate the complex terrain of ethical sourcing from China while maintaining competitiveness—covering everything from environmental standards and labour practices to verification methods and practical implementation strategies.

China has made significant strides in environmental regulation in recent years, but it's important to note that implementation can still vary widely across regions and industries.

OEKO-TEX Standard 100

Particularly important for textiles, ensuring products are responsibly made and are free from harmful substances.

Such tasks can pose a challenge without the necessary local knowledge and language skills. Epic Sourcing's verification reports include checks on environmental certifications and compliance history, providing you with actionable insights to evaluate suppliers' green credentials.

 

Labour Practices: Ensuring Fair Treatment Throughout Your Supply Chain

Labour practices in China have improved significantly over the past decade, yet challenges remain. UK businesses need to be particularly vigilant about several key areas to ensure ethical sourcing.

Critical Labour Issues to Monitor

Despite clear regulations, excessive overtime remains common in many Chinese factories, particularly during peak production seasons. Ethical suppliers maintain reasonable working hours and provide adequate rest days.

Forced Labour Risks

Forced labour concerns have rightly received increased international attention. UK businesses must conduct thorough due diligence to ensure their supply chains are free from these practices.

 

Labour Standards and Certifications to Look Out For

SA8000

A comprehensive social accountability standard addressing forced labour, child labour, health and safety, freedom of association, discrimination, disciplinary practices, working hours, and remuneration.

BSCI (Business Social Compliance Initiative)

A supply chain management system helping companies improve working conditions in factories worldwide, particularly popular with European businesses.

WRAP (Worldwide Responsible Accredited Production)

An independent certification program focusing on lawful, humane, and ethical manufacturing, especially relevant for apparel, footwear, and sewn products.

SMETA (Sedex Members Ethical Trade Audit)

A widely used social audit methodology that enables businesses to assess suppliers on labour standards, health and safety, environment, and business ethics.

"Beyond certifications, building long-term relationships with ethical suppliers is key. When suppliers know you're committed to the relationship, they're more likely to invest in improving labour conditions."

How to Verify Labour Practices

UK businesses should implement a multi-layered approach to verifying labour practices:

  • Review recent third-party social compliance audit reports
  • Conduct unannounced visits or employ local representatives for factory inspections
  • Interview workers when possible (through trusted intermediaries)
  • Check public records and media reports for labour violations
  • Assess suppliers' worker grievance mechanisms and remediation processes
  • Verify proper documentation of worker ages, contracts, and payment records

Epic Sourcing's verification reports include checks on labour compliance history and relevant certifications, providing a solid foundation you can trust for your due diligence process.

 

Concerned about labour standards in your supply chain?

Our verification service helps you identify suppliers with strong labour practices and avoid those with problematic histories.

Utilise Verification Services

  • Make the most of Epic Sourcing's verification service to access detailed supplier information
  • Formalise ethical requirements in contracts and agreements to ensure accountability.
  • Recognise and reward suppliers who exceed standards

Market Benefits

  • Access to premium market segments willing to pay for ethical products
  • Competitive differentiation in crowded markets
  • Enhanced brand reputation and customer loyalty
  • Appeal to the growing ethically-conscious consumer
  • Better alignment with large retail buyers' requirements

 

A UK-based home goods retailer implemented a comprehensive ethical sourcing program with their Chinese suppliers, focusing on environmental standards and fair labour practices. Initial implementation required investment in supplier verification, audits, and relationship building. Within 18 months, the company experienced:

Verification is the foundation of ethical sourcing. Without reliable information about your suppliers, even the most well-intentioned ethical sourcing strategy can fall short. Epic Sourcing's Chinese Company Verification service provides UK businesses with the insights needed to make informed ethical sourcing decisions.

Ethical sourcing from China is no longer optional for forward-thinking UK businesses—it's becoming essential for compliance, reputation management, and meeting changing consumer expectations. As China continues to improve its environmental and labour regulations, the landscape for ethical sourcing will evolve, presenting both challenges and opportunities.

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