Rural development and forest restoration have been key priorities for the Chinese government over the last decade, and indeed many countries in the world. To address these priorities, the Chinese government has aggressively promoted new investment—public and private, including foreign direct investment (FDI)—together with tenure and related institutional reforms. Over the same period, Corporate Social Responsibility (CSR) has become a highly touted approach that aims to ensure minimal social, economic, as well as environmental protections, and to promote social and economic development. This study examines the case of one FDI made by Stora Enso with International Finance Corporation support in forestland plantations in Guangxi, China. In brief, the study finds that despite Stora Enso’s good intentions as revealed by its establishment of the “Principles for Sustainable Wood and Fibre Procurement and Land Management” in March 2005 among other CSR principles, there are major limits to their legal due diligence. In effect, this is raising risks for local people to both their rights to land and livelihoods.
