Could surveillance technologies make us boiling frogs? The government recognizes that, and will hopefully work collaboratively with the business community to address this issue both effectively and pragmatically., Write to Richard Vanderford at richard.vanderford@wsj.com, Copyright 2022 Dow Jones & Company, Inc. All Rights Reserved. Business Insider has also contacted Gap for comment. 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. This factorys corporate website cites partnerships with the companies Fila, Adidas, Puma and Nike. 83 foreign and Chinese companies as allegedly directly or indirectly benefiting from the use of Uyghur workers outside Xinjiang through potentially abusive labour transfer programs. 27 factories in nine Chinese provinces that are using Uyghur labour transferred from Xinjiang since 2017. Business & Human Rights Resource Centre invitedAbercrombie & Fitch. Roughly one in five cotton garments sold around the world contain cotton or yarn from Xinjiang, the heartland of the majority-Muslim Uighur people, a coalition of more than 180 rights group said in a letter published Thursday. They expect a period of painful adjustment. minority groups in the Xinjiang is contributing to UK value chains. Technology offers some solutions. The Haoyuanpeng Clothing Manufacturing Co. Ltd is also identified as using forced labor. That report said that O-Film Technology, a contractor for Apple, Microsoft, Google and other companies, received at least 700 Uighur workers in a program that was expected to gradually alter their ideology. It tied other Apple suppliers, including Foxconn Technology, to similar employment programs. Brandon Daniels, The groups say it is the "largest internment of anethnic and religious minority since World War II.". 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. The Wall Street Journal and Chinese-language news media, is exacerbating tensions between the United States and China, previously reported by The Washington Post. 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. 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.. The complexity of the global supply chain has undoubtedly made it more difficult for global corporations to monitor the connections of their suppliers to forced labor in China, but ASPI reached out to all 83 brands included in the report to confirm details of their suppliers as listed in the report. Additionally, it has been reported that they are subject to threats, arbitrary detainment and abusive working conditions. Further company comments can also be found in the articles linked below. 87990cbe856818d5eddac44c7b1cdeb8. Our Morning Risk Report features insights and news on governance, risk and compliance. 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. The coalition has also issued a call to action that aims for brands to remove all connections with suppliers that have used forced labor. Rebutting a presumption of forced labor is going to be a very challenging endeavor, he said. These programs have all been identified in connection to the human rights abuses of the Uyghur population as a whole. Business Insider has contacted Badger Sport for comment on its ties to Xinjiang. If you'd prefer to view all available content regardless of language, please change this switch. 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. Reporting by Michael Martina, Richa Naidu, Aishwarya Venugopal and Jeffrey Dastin; editing by Jonathan Oatis, How the other half lives: luxury companies thrive, Indian private equity firm Lighthouse in talks to raise $400 million fund, Italy's Ali Group sees shelter from economic storm in Welbilt deal, Carmaker BYD to recall more Tang DM hybrids in China over battery faults, Bentley first-half profit more than doubles, boosted by customised cars, See here for a complete list of exchanges and delays. 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.. Lobbyists have argued that the acts requirements could wreak havoc on supply chains that are deeply embedded in China. "It is virtually certain that many of these goods are tainted with forced labor," the letter said. 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. 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. Since the release of ASPIs report, H&M has ended a relationship with a Chinese yarn supplier due to its ties to forced labor. ", Nike said it was "conducting ongoing diligence with our suppliers in China to identify and assess potential risks related to employment of Uighur or other ethnic minorities,". in Germany (VR 38088 B). 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. L Brands sent its response after publication of our Weekly Update, in October 2020. For companies maintaining relationships with Chinese suppliers, there are practical difficulties. 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. The Borgen Project is an incredible nonprofit organization that is addressing poverty and hunger and working towards ending them. Some companies seem unwilling or unable to ascertain precise information about their own supply chains," she said. Nike has also released a statement that it has no current relationship with the factory. One client, a global technology company, in February identified a problematic Xinjiang-linked supplier and severed the relationship, he said. 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. The Uyghur Forced Labor Prevention Act would require companies sending goods to the United States to scrutinize those supply chains, or perhaps abandon Chinese suppliers altogether. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Sign up for notifications from Insider! 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. Coca-Cola declined to comment. Explore the big challenges, opportunities, debates and frameworks for business and human rights. Apple said in a statement that it had the strongest supplier code of conduct in its industry and that it regularly assessed suppliers, including with surprise audits. This has been endorsed by investor organizations from more than 35 countries as well as more than 300 Uyghur groups, trade unions and civil society groups. The report identified27 factories in nine Chinese provinces that are using Uyghur labour transferred from Xinjiang since 2017. Senator Marco Rubio (R-FL) speaks during a Senate Commerce, Science, and Transportation Committee hearing on Capitol Hill in Washington, U.S., April 21, 2021. 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. Ambassador Liu Xiaoming did not deny the footage's veracity, which first emerged last year, to the BBC's Andrew Marr, but insisted that it could merely show a regular "transfer of prisoners" in the country. The recentrefusalby five international auditing firms to inspect for labor abuses in Xinjiang is a moment for the auditing and certifications industry to rethink its approach to social audits everywhere. (BEIS) for ensuring that UK businesses do not profit from human rights abuses. The Wall Street Journal news department was not involved in the creation of this content. 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. WASHINGTON, June 10 (Reuters) - A U.S. senator on Thursday slammed American companies, including Amazon.com Inc (AMZN.O), Apple Inc (AAPL.O) and Nike Inc (NKE.N), for turning a blind eye to allegations of forced labor in China, arguing they were making American consumers complicit in Beijing's repressive policies. Our Standards: The Thomson Reuters Trust Principles. as well as other partner offers and accept our. Numerous sources, including government documents, show that transferred workers are assigned minders and have limited freedom of movement.. 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. WASHINGTON Nike and Coca-Cola are among the major companies and business groups lobbying Congress to weaken a bill that would ban imported goods made with forced labor in Chinas Xinjiang region, according to congressional staff members and other people familiar with the matter, as well as lobbying records that show vast spending on the legislation. NOW WATCH: How Adidas is turning plastic ocean waste into sneakers and sportswear, Visit Business Insider's homepage for more stories, using forced Uighur labor to make personal protective equipment (PPE) exported to the US and other countries. In the first three quarters of 2020, Nike spent $920,000 on in-house lobbying of Congress and other federal agencies. 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. Modern commerce oftendistances consumers from production. 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. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. 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. Some have also been sent to factories, where they are forced to work for little to no wage. Swedish public procurer SKL Kommentus Inkpscentral, the Swedish Regions and the Church of Sweden have produced a joint letter requiring their suppliers to take certain actions following concerns over the Uyghur forced labour. 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. 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. 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). 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. Since 2017, China has drawn the attention of international human rights activists about the massive and forced transfer of, Argentina. In a statement reported in The Guardian, PVH Corporation, the owner of Calvin Klein and Tommy Hilfiger, denied it sourced finished products from Xinjiang. They include Abercrombie & Fitch, Adidas, Amazon, Calvin Klein, Gap, H&M, Marks & Spencer, Nike, Patagonia, Tommy Hilfiger, Victoria's Secret, and Zara. 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.
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