companies that use forced labor

The groups say it is the "largest internment of anethnic and religious minority since World War II.". Earlier this year, we conducted a detailed investigation with our suppliers in China and found no evidence of forced labor on Apple production lines and we are continuing to monitor this closely.. Investors are putting pressure on Western companies over alleged human rights abuses in Chinas Xinjiang region, requesting more information about supply chains and urging companies to act to prevent abuse. The appearance of such links does not constitute endorsement of the websites they lead to or the information contained therein, over which we exercise no editorial control. chief executive of Exiger LLC, a risk and compliance software company. Apples lobbying was previously reported by The Washington Post. In its March report, the Australian Strategic Policy Institute identified Apple and Nike among 82 companies that potentially benefited, directly or indirectly, from abusive labor transfer programs tied to Xinjiang. They include Abercrombie & Fitch, Adidas, Amazon, Calvin Klein, Gap, H&M, Marks & Spencer, Nike, Patagonia, Tommy Hilfiger, Victoria's Secret, and Zara. Following mounting evidence on human rights abuses of Uyghur workers and other ethnic minorities from a range of credible sources and concerns from civil society organizations, the FLA banned its members from sourcing from Xinjiang, China, a first in its 20 year history. Looking for the presence of forced labor is part of every supplier assessment we conduct and any violations of our policies carry immediate consequences, including business termination, the statement said. The activists named 38 companies which they say, based on credible news investigations and news reports, have products connected to forced Uighur or Turkic Muslim labor. As a subscriber, you have 10 gift articles to give each month. The Qingdao Taekwang Shoes Co. Ltd has been specifically connected to forced labor of the Uyghur population. This report examines the extent to which the forced labour of Uyghurs and other ethnic Nike is this factorys primary customer and released a statement saying that the factory has not recruited new workers from Xinjiang since last year and that it is seeking advice on the most responsible path toward handling the employment of the remaining workers from this region. These programs have all been identified in connection to the human rights abuses of the Uyghur population as a whole. Click here for more information related to alleged forced labour abuses in Xinjiang Uygur Autonomous Region, Companies say they fear the law that came into effect Tuesday aiming to prevent shipping of goods using forced labour is difficult and costly to comply with, Retailers highlighting issue of forced labor face backlash from Chinese consumers, Kagome first major Japanese corporation to cut ties over Uyghur issue. There are several advocacy groups dedicated to spreading awareness and furthering tangible steps to end the persecution and exploitation of the Uyghur population. The End Uyghur Forced Labor Coalition has written to 17 companies regarding the Uyghur Forced Labor Prevention Act (S. 3471), which is intended to end the use of forced labor from this region in supply chains. While millions are fretting whether they can afford another $1,000 on energy this year, others are still splashing out on $10,000 Hermes handbags as soaring prices leave wealthier people relatively unscathed. In March 2020, the Australian Strategic Policy Institute (ASPI) published a reportUyghurs for sale: Re-education, forced labour and surveillance beyond Xinjiang, whichidentified83 foreign and Chinese companies as allegedly directly or indirectly benefiting from the use of Uyghur workers outside Xinjiang through potentially abusive labour transfer programs. There are opportunities to purchase in allied countries that offset the risk.. How Swedens horoscope is affected by current transit, Jimmy Stewart Roles Are Still So Relevant. It also makes a series The U.S. Chamber of Commerce declined to comment on lobbying, instead providing a letter it sent to Congress in November with seven other industry groups. . 2020 Alliance for American Manufacturing, Some of the Worlds Biggest Brands Depend on Forced Labor in China, International Labour Organizations eleven indicators of forced labor, Chinas Economy and Chinas Living Conditions Dont Match Up, New Report: Chinas Solar Companies Use Forced Labor, Commission Examines Critical Vulnerability in the Global Supply Chain: China. Everyone is in uncharted territory, he said. L Brands sent its response after publication of our Weekly Update, in October 2020. They were benefiting from forced labor or sourcing from suppliers that were suspected of using forced labor," Rubio said. Nike said that the Qingdao factory had stopped hiring new workers from Xinjiang in 2019, and that an independent audit confirmed there were no longer employees from there at the facility. "Whenever we receive proof of forced labor, we take action and suspend privileges to sell," an Amazon spokesperson said. Forced labor stemming from human rights violations in the Xinjiang province of China has been linked to at least 83 major corporations. Business Insider has contacted Badger Sport for comment on its ties to Xinjiang. adidas, Amazon, BMW, Gap, H&M, Inditex, Marks & Spencer, Nike, North Face, Puma, PVH. Workers at this factory also attend a night school that seems to closely resemble the re-education camps in the Xinjiang province. The Chinese government has in recent years rounded up at least 1 million Uighurs and other Turkic and Muslim people, and put them in prison-like detention camps. (According to a report published in March by the Australian Strategic Policy Institute that cited state media, the factory employed around 800 Uighur workers at the end of 2019 and produced more than seven million pairs of shoes for Nike each year.). H&M told The Guardian it had an indirect partnership with a yarn producer operating in Xinjiang, and that it is reviewing its work with it. In the technology sector, Apple, Amazon, Samsung, Sony and Microsoft, among others, have been connected to factories that utilize forced labor in China. In the first three quarters of 2020, Nike spent $920,000 on in-house lobbying of Congress and other federal agencies. 1997, Mattel buys Matchbox (Documentary, Fiction). "The only way brands can ensure they are not profiting from the exploitation is by exiting the region and ending relationships with suppliers propping up this Chinese government system," said Jasmine O'Connor OBE, CEO of Anti-Slavery International, one of the letter's signatories. This factorys corporate website cites partnerships with the companies Fila, Adidas, Puma and Nike. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. Disclaimer: Business & Human Rights Resource Centre and its collaborative partners take no position on the diverse views presented in linked material within the database, nor can we guarantee the factual accuracy of all the articles and reports we make available. Roughly one in five cotton products sold around the world come from the Uighur heartland, the activists said. ", Senator Ed Markey, who led the hearing with fellow Democrat Tim Kaine, said a number of U.S. technology companies had profited from the Chinese government's "authoritarian surveillance industry," and that many of their products "are being used in Xinjiang right now.". as well as other partner offers and accept our. Business groups and major companies like Apple have been pressing Congress to alter legislation cracking down on imports of goods made with forced labor from persecuted Muslim minorities in China. In a statement reported in The Guardian, PVH Corporation, the owner of Calvin Klein and Tommy Hilfiger, denied it sourced finished products from Xinjiang. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. The report said that the cotton textile industry in the region has made remarkable progress in creating jobs, increasing farmers' income and improving people's living standard. Compliance experts and companies, particularly those that deal with cotton, tomatoes and solar-panel ingredient polysiliconXinjiang exports explicitly flagged as enforcement targets in the statuteare scrambling to understand how the law will be enforced in practice. I dont think that they appropriately and properly prepared.. The content is also available in the following languages: Coca-Cola declined to comment. U.S. lawmakers are seeking to pass legislation that would ban imports of goods made in Xinjiang over concerns about forced labor. The companies identified in connection to this forced labor use include international brands that span across the technology, clothing and automotive sectors. Our Morning Risk Report features insights and news on governance, risk and compliance. Dozens of major global brands are accused of complicity in the mass repression of China's Uighur Muslim minority by sourcing their supplies of cotton products from factories exploiting the people's forced labor. More than 80,000 of the estimated 1.5 million Uighurs detained in China have been transferred from re-education camps to a network of 27 Chinese factories for state-sponsored forced labor, according to the report produced by the think tank the Australian Strategic Policy Institute (APSI). Adidas specifically stated that it does not have a current relationship with the company and is investigating this claim. Modern commerce oftendistances consumers from production. Mr. Rossiter said that Nike had these firms on retainer long before the Xinjiang legislation was introduced, and that the company actively worked with lobbying firms to engage Congress on a variety of subjects it cares about. The region is closer to central Asias capitals than to Chinas populous east coast, with its largest city, Urumqi, located about 2,500 miles from Shanghai. Adidas claimed to The Guardian that it does not source goods from Xinjiang, and have told suppliers not to do so either. The full list can be seen here. It has been well documented that Chinas Uighur detention camps have worked to systematically strip the group of its cultural identity, language and religion in reprehensible conditions. Amazon has issued a statement saying they do not tolerate the use of forced labor and will be investigating these findings further. minority groups in the Xinjiang is contributing to UK value chains. The Haoyuanpeng Clothing Manufacturing Co. Ltd is also identified as using forced labor. The solar industry's growing dependence on China's autonomous Xinjiang region for a critical raw material poses mounting risks to a wide range of companies as the U.S. government moves to confront Beijing over alleged human rights abuses there. Its far too easy to pretend that the boxes of goods that show up at your front door just magically arrive there seemingly apparating into being. Some large companies have been proactive in complying with the law, Mr. Daniels said. Amnesty International investigated the exports of digital surveillance technologies from Europe to China, a country that (mis)uses its criminal law system to restrict human rights. But the legislation, called the Uyghur Forced Labor Prevention Act, has become the target of multinational companies including Apple whose supply chains touch the far western Xinjiang region, as well as of business groups including the U.S. Chamber of Commerce. Mr. Daniels said Exiger software can go through a database of trade paperwork in an effort to determine the ultimate source of goods, for example, if a hypothetically untainted Brazil-based supplier has actually been receiving goods from Xinjiang. It would impose high standards, barring imports of goods made in whole or in part in Xinjiang unless companies prove to customs officials that their products were not made with forced labor. Greg Rossiter, the director of global communications at Nike, said the company did not lobby against the Uyghur Forced Labor Prevention Act but instead had constructive discussions with congressional staff aides aimed at eliminating forced labor and protecting human rights. Here are some of the responses from big brands named in the letter: Badger Sport, one of the companies listed in the activists' letter, hadannounced last January that it had cut ties with a supplier that reported to be using Uighur labor. Coca-Cola said in a statement that it complies with all laws associated with its political activities and has adopted best-in-class disclosures practices.. The report identified27 factories in nine Chinese provinces that are using Uyghur labour transferred from Xinjiang since 2017. Demonstrators rallying last month in support of the measure in Washington. The Wall Street Journal news department was not involved in the creation of this content. Weve been following the moves of these two Chinese companies for many months now as they work to force their competitors in the rail and automotive industries out of business. Further company comments can also be found in the articles linked below. Xinjiang produces vast amounts of raw materials like cotton, coal, sugar, tomatoes and polysilicon, and supplies workers for Chinas apparel and footwear factories. One client, a global technology company, in February identified a problematic Xinjiang-linked supplier and severed the relationship, he said. Disclosure forms show that Apple paid Fierce Government Relations, a firm led by former staff aides to Senator Mitch McConnell of Kentucky and President George W. Bush, $90,000 to lobby on issues including Xinjiang-related legislation in the third quarter. The report identified. Business Insider has also contacted Gap for comment. The United States government and parliaments in countries, including Britain and Canada, have described China's policies toward Uyghurs as genocide. Companies would be required to disclose information on their ties to Xinjiang to the Securities and Exchange Commission. The report identified 27 factories in China that employ the use of labor transferred from Xinjiang. Strengthening Australias Modern Slavery Act: Step one in revitalising Australias approach to corporate respect for human rights, Mitsubishi Electric (part of Mitsubishi Group), Victoria's Secret (part of Limited Brands), Mitsumi Electric Co., Ltd. (part of Minebea Co., Ltd.), Agriculture/food/beverage/tobacco/fishing: General, Poverty/Development/Economic & social rights: General, Racial/ethnic/caste/origin discrimination, Health: General (including workplace health & safety), Socially-responsible investing & shareholder activism, International investment agreements & policy, Security issues & conflict zones: General, European Union Chamber of Commerce in China, UN Guiding Principles on Business & Human Rights, UN Sustainable Development Goals/Millennium Development Goals, Investment, trade, globalisation: General, Please click here for more information related to alleged forced labour abuses in Xinjiang Uygur Autonomous Region, Uyghurs for sale: Re-education, forced labour and surveillance beyond Xinjiang, Japanese apparel co. United Arrows reportedly stops using Xinjiang cotton, China: Forced labour red flags in car battery supply chain, Global coalition urges companies not to dump Uyghur-linked goods in non-US markets in wake of forced labour ban. Chinas vast campaign of suppressing and forcibly assimilating Uighurs and other minorities in Xinjiang has attracted the scorn of politicians and consumers around the world. Explore the big challenges, opportunities, debates and frameworks for business and human rights. Human Rights Now announced its report, which raises the possibility of Japanese companies indirect involvement in forced labour of Uyghurs through their supply chains and urges them to take immediate action. A new report identifies 83 global brands, including Nike, Gap, Target, Apple, H&M, BMW, Samsung and Huawei, that depend upon factories in China that utilize the forced labor of Chinese ethnic minority Uighurs. Graeme Jennings/Pool via REUTERS. 27 factories in nine Chinese provinces that are using Uyghur labour transferred from Xinjiang since 2017. Business & Human Rights Resource Centre invitedAbercrombie & Fitch. of recommendations to the Department for Business, Energy and Industrial Strategy The withhold-release order will apply to products including apparel, textiles, tomato seeds, canned tomatoes and tomato sauce, and will apply at all US ports of entry. The report details how Chinas work programs for Uighur detainees is consistent with six of the International Labour Organizations eleven indicators of forced labor, including threatening Uighur workers and their families with re-education, restricting freedom of movement through surveillance and isolation, and military-style management of work within the factories. It also said that the COFCO Tunhe facility in Xinjiang, which supplies sugar to a local bottling facility and had been linked to allegations of forced labor by The Wall Street Journal and Chinese-language news media, successfully completed an audit in 2019.. Companies and groups lobbying on the bill have been pushing for various revisions, including easing disclosure requirements, people familiar with the conversations said. Could surveillance technologies make us boiling frogs? Human rights groups and news reports have linked many multinational companies to suppliers there, including tying Coca-Cola to sugar sourced from Xinjiang, and documenting Uighur workers in a factory in Qingdao that makes Nike shoes. U.S. Customs currently has limited resources and, at least at first, will likely seek to focus its enforcement efforts on the worst actors in high-profile sectors including cotton, apparel, tomatoes and silica-based products, Mr. Feldman said. Alongside its core work providing a platform for Human Rights advocates, the Resource Centre runs several focused programme areas and regularly releases briefings and reports on areas of particular interest. In a statement, Coca-Cola said that it strictly prohibits any type of forced labor in our supply chain and uses third-party auditors to closely monitor its suppliers. Myanmar garment worker allegations tracker, FIFA World Cup Qatar 2022 Parallel Portal, Weekly Update 27 July | Myanmar: Garment worker abuse exposed 18 months after coup, Resistance, harassment and intimidation: Garment worker abuse under Myanmar's military rule, Operating in conflict-affected contexts: An introduction to good practice, Ukraine: Responsible business conduct in a war of aggression. Since 2017, China has drawn the attention of international human rights activists about the massive and forced transfer of, Argentina. Firms were already responding by trying to find sources for products outside Xinjiang, he said. The letter said the groups had long been working to combat forced labor, and urged the government to take a comprehensive approach that would mobilize the administration, Congress and foreign governments to address the problem, in addition to industry. Rights groups, researchers, former residents and some western lawmakers say Xinjiang authorities have facilitated forced labor by arbitrarily detaining around a million Uyghurs and other primarily Muslim minorities in a network of camps since 2016. Companies must take a multipronged approach to stay on the right side of a strict new U.S. law aimed at curbing forced labor in China, compliance experts said, with steps such as sourcing products from other countries and visiting Chinese suppliers for spot checks. Its extremely difficult, Ms. Lee said. The Uyghur Forced Labor Prevention Act, which went into effect last month, gives U.S. Customs and Border Protection the power to block importing goods with ties to Xinjiang, the home region of Chinas Uyghur minority group, because those goods are presumed to be made with forced labor. This section contains a selection of key portals curated by our global team. Nike and Coca-Cola Lobby Against Xinjiang Forced Labor Bill, https://www.nytimes.com/2020/11/29/business/economy/nike-coca-cola-xinjiang-forced-labor-bill.html. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. The Wall Street Journal and Chinese-language news media, is exacerbating tensions between the United States and China, previously reported by The Washington Post. U.S. Congress has recently introduced legislation to protect investors through the requirement of disclosure of goods sourced from Xinjiang. Chinese authorities have sharply criticized the U.S. law. But critics say the move didn't go far enough. Sign up for our newsletter to receive our top stories based on your reading preferences delivered daily to your inbox. Copyright 2022 Dow Jones & Company, Inc. 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Companies would likely require almost courtroom evidence on the provenance of goods to pass muster, she said, adding she recommends businesses use investigative firms, third-party resources and tactics like live or teleconference visits to check on suppliers. According to The Guardian, China is the world's biggest supplier of cotton products, and 84% of the country's cotton output is sourced from Xinjiang. Authorities are believed to have imprisoned at least 1 million Uighurs and other minorities in so-called "reeducation camps. Asked about the allegations of forced labor, Nike referred to a statement in March in which it said that it did not source products from Xinjiang and that it had confirmed that its suppliers were not using textiles or yarn from the region. All quotes delayed a minimum of 15 minutes. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. Nike has also released a statement that it has no current relationship with the factory. What remains of the Siege of Paris in this old theme park? But this myth obfuscates a multitude of tragic truths that we can no longer deny,one of these being that the goods that fill our shopping carts may be the spoils of de facto slave labor in China. The coalition has also issued a call to action that aims for brands to remove all connections with suppliers that have used forced labor. Additionally, it has been reported that they are subject to threats, arbitrary detainment and abusive working conditions. ASPI estimatesat least 80,000 Uyghurs were transferred out of Xinjiang and assigned to factoriesin a range of supply chains including electronics, textiles, and automotivesunder a central government policy known as Xinjiang Aid.

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