British University Alleges Uyghur Forced Labor Present in 25% of Luxury Vinyl Flooring in US

A new report from Sheffield Hallam University researchers alleges that about 25% of flooring sold in the U.S. includes PVC, a type of plastic, made in China, and that "the lion's share" of the resins come from China's Xinjiang Uyghur region.

The two largest PVC manufacturers in China operate in the Xinjiang Uyghur region, the report says.

The report lays out evidence that these two companies employ transferred Uyghur workers, and that those workers are kept on the job against their will. But starting June 21, CBP would not need evidence of labor transfers to detain luxury vinyl flooring made in Xinjiang or made with Xinjiang inputs.

"Xinjiang-Uyghur-Auotomous-Region-manufactured PVC is so inexpensive, it has become the most common material of all floors sold in the United States," the researchers wrote. "PVC flooring shipments from China to the U.S. increased by 300% in the last several years. PVC made by Xinjiang Zhongtai is shipped directly to Vietnamese flooring manufacturer Jufeng New Materials, which then ships luxury PVC-based flooring to the top U.S. flooring brands sold in major home improvement outlets and online."

The report said that Jufeng Vietnam has made more than 1,300 shipments to Home Legend, a company that makes flooring sold in Home Depot. "Several of the vinyl flooring products available on Home Depot’s website and in their brick-and-mortar stores match the product code and thickness in records detailing PVC based flooring (note: SPC stands for stone plastic composite) shipments between Jufeng and Home Legend. Home Depot sells these products under the LifeProof brand name."

"Home Depot indicated in correspondence with the authors that Zhejiang Tianzhen, Jufeng’s parent company, had assured Home Depot executives that Home Depot products have never contained PVC sourced from the XUAR. Furthermore, Home Depot said that it had been told by Zhejiang Tianzhen that on January 24, 2022, it had 'explicitly instructed all their PVC sourcing agents to cease purchasing PVC resin from the XUAR.' Clarification has been sought regarding whether or how Home Depot has been able to verify these claims, particularly given that PVC from different sources can be blended at the manufacturing facilities and that Jufeng and Tianzhen both have reported that they source such a significant proportion of their PVC from the Uyghur Region."

A Home Depot spokesperson told International Trade Today on June 15: "The Home Depot prohibits the use of forced or prison labor in its supply chain. This is an issue we take very seriously, and we are reviewing the information in the report and will work to take any additional steps necessary to ensure that the product we sell is free from forced labor and fully compliant with all applicable regulations, including the Uyghur Forced Labor Prevention Act."

The researchers also named other major flooring brands that they believe could be importing flooring with Xinjiang inputs. Armstrong and Mannington Mills, two of those companies, didn't comment.

A recent webinar from Miller and Chevalier (see 2205310051) told companies that if their products show up in a report such as this one, they should expect to become an enforcement priority.

"Every company that sources from China should be conducting research similar to that presented in this report to identify exposure and eliminate it. The following report can serve as a sort of roadmap for that necessary and urgent work," the report said. This project included the expertise of a researcher who can read both Uyghur and Chinese.

As the report suggests, however, many companies are importing from India or Vietnam, not directly from China. In the report's corporate responses annex, SSI Aeration said their PVC pipe supplier, Supreme Industries, attested to them that they stopped working with Xinjiang resin in 2019 after the border skirmish between India and China.

"I hope to have from Supreme some evidence of purchases from different vendors next week from Supreme, but I would encourage you to do more due diligence on the Indian vendors on your list, to ensure you don't have old information. On the other hand, if you have proof that what Supreme is telling us is incorrect, we would like to know about it so that we can re-evaluate our position," the company's director wrote. The researchers then sent Panjiva data that showed shipments from Xinjiang Zhongtai to Supreme Industries in 2021.

"Thank you for this. It's disturbing that the Panjiva data contradicts what they told us," the director responded. "We are not large enough to have a compliance officer but these days it seems every company needs one. In this case we will have to change vendors or ask them to change suppliers and provide documentation not just talking."