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United States Adds 37 Chinese Companies to Forced Labor List

About 28 million people worldwide work against their will. These people are exploited through threats, physical violence, debt bondage, or other means, according to RAND. Some sources estimate that more than one-fifth of the world’s imports might be made using forced labor.

On 14 January, the U.S. Department of Homeland Security (DHS) said it would block imports from 37 Chinese companies under the Uyghur Forced Labor Prevention Act. The department cited the companies’ alleged ties to forced labor in the far-western Xinjiang region of China, where the government has placed large numbers of minorities—including predominantly Muslin ethnic groups, such as the Uyghurs—in detention or under surveillance.

The 2021 law prohibits U.S. import of goods manufactured or mined in the Xinjiang Uyghur Autonomous Region (XUAR). U.S. Customs and Border Protection noted that “enforcement of this act is crucial to ensuring that goods entering the U.S. are not the product of human suffering.”

The 37 entities added this week to the special list under the law include subsidiaries of a major critical mineral supplier, Zijin Mining, and one of the world’s largest textile manufacturers, Huafu Fashion. The additions also included companies in real estate, mining, solar, and cotton production, The New York Times reported.

In recent analysis requested by the DHS, RAND researchers reviewed the impact of DHS efforts to address forced labor through trade enforcement and evaluated the impact that DHS’s actions have had on eliminating forced labor use. The report found that while trade enforcement is making measurable progress, DHS cannot address all impediments on its own. Indirect supply chain linkages and complexities make it difficult to gain full visibility into how goods are made from start to finish, which can lead to the import of goods tainted by forced labor.

RAND cites an example of forced laborers making fish food being fed to farm-raised salmon—that salmon is now a tainted good. Similarly, if the cotton grown or yarn dyed to make clothes is produced using forced or bonded labor, that clothing is tainted by forced labor. 

Although RAND found that trade enforcement still has value—even if it alone cannot change China’s policy on XUAR forced labor—the researchers did note that it inevitably comes with costs that can undermine its aims.

“U.S. businesses can incur costs from tracing supply chains, switching suppliers, and mitigating commercial disruptions; the environment could experience related harms; and China could engage in retaliation and obfuscation,” the report said.

RAND recommended that DHS look for opportunities to encourage robust stakeholder participation by improving information flow and quality, along with considering a more comprehensive approach to combatting forced labor. This could include working with other U.S. agencies and other countries to leverage complementary sanctions and measures.

RAND also recommended additional funding and staffing for trade enforcement, especially in light of concerns about DHS hiring, skills, burnout, and retention.

 

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