Report Lists Chinese Industries, Companies Tied to Uyghur Forced Labor

Products tainted by Uyghur forced labor include a "vast array" of agricultural products, raw materials and manufactured goods and are not just limited to the few industries CBP has specifically targeted, according to a report from Sheffield Hallam University released May 15. While tomatoes, cotton and polysilicon do have a large market share of goods produced through forced labor, China's extensive production of raw materials, agricultural products, and manufacturing products means that many industries have some sort of tie to the Xinjiang Uyghur Autonomous Region (XUAR).

"The role of Uyghur forced labor in global supply chains is much more extensive than simply a few sectors and extends far beyond direct suppliers because the XUAR is a source of raw materials, component parts, and products that can be incorporated in finished goods at multiple points along the value chain during manufacturing or production," the report said.

Other products that have been made in the XUAR include agricultural products such as dates and food additives, raw materials such as aluminum, steel, and copper, and manufacturing goods such as textiles, polyvinyl chloride (PVC) and batteries. There has also been a surge in electronics being produced in XUAR and automotive parts as well, the report said.

The report said that the total share of global production of products that originated in Xinjiang can be high for certain products. The share of total global production originating in Xinjiang is 20% for cotton, 25% for tomato paste, 45% for polysilicon, 10% for PVC, and 12% for aluminum, the report said.

The report found a few commonalities between all industries that operate within the XUAR. They include the "rapid expansion to occupy a significant share of national and global markets; (ii) incentives and subsidies for corporate relocation; (iii) artificially deflated cost of production due to low coal-based energy costs, lack of environmental regulation, and forced labor," the report said.

The report, part of a series of "evidence briefs" from the university's Forced Labor Lab, led by Professor Laura Murphy, summarizes reports on the use of Uyghur forced labor in supply chains for various products, as well as reports on specific companies that have been linked to forced labor.

For cotton, the report says Xinjiang Production and Construction Corps (XPCC) uses prison labor and conscripted labor of unincarceted citizens, the report said. As much as 90% of China's cotton comes from the XUAR, it said. There is also a state-run conscripted labor program that forces children "as young as elementary school age" and adults to pick cotton during harvest seasons.

Two XPCC-owned companies produce tomatoes, including Xinjiang Guannong Fruit & Antler Co., Ltd. and Chalkis Health Industry Co., Ltd., the report said. Both companies are involved in the state-sponsored labor transfer program, the report said. These companies sell their tomato paste under "various brands, including several that are very popular in West Africa and others that are misleadingly labeled as originating from Italy," the report said.

Dates can also originate from XPCC. Some of these dates have "entered the United States with labels clearly indicating their origin," despite the passage of the Uyghur Forced Labor Prevention Act, the report said.

As for supplements and food additives, Chenguang Biotech Group Co., Ltd., helps produce "lutein supplements, paprika oleoresin, and other plant-based products such as extracts and dyes," the report said. The company has "documented ties to state-sponsored labor transfers and poverty alleviation efforts," and has "at least twelve separate subsidiaries and factories" within XUAR, the report said.

China has also made substantial investments in steel, aluminum, and copper production. Eight top aluminum producers located in XUAR have participated in the labor transfer program. Two of those companies are owned by XPCC, the report said.

Chinese company Baowu produces 6% of the world's total steel, the report said, and also has engaged in "repressive programs" in Xinjiang, including labor transfer programs.

China has also become "the most significant location for copper processing and smelting," the report said, and two of the largest Chinese companies involved in copper processing, Xinjiang Nonferrous and Zijin Mining, have engaged in "repressive" programs as well, including labor transfers.

A portfolio of products ranging from textiles and solar panels to electronics and automotive parts is touched by Uyghur forced labor, the report said. A recent report found over 40 automotive manufacturers were sourcing from the XUAR and more than 50 international automotive parts or car manufacturers sourcing directly from companies operating in the XUAR, and over 100 manufacturers with some exposure to goods made with Uyghur forced labor.

There also is evidence of ties to forced labor in Chinese lead-acid and lithium-ion battery supply chains, the report said. "Camel Group Co., Ltd. is one of China’s largest lead-acid battery manufacturers and recyclers," and "is directly involved in and benefits from state-sponsored labor transfer programs," the report said. As for lithium-ion batteries, "both Ganfeng Lithium (one of the world’s most important miners and producers of lithium products) and CATL (one of the world’s most significant EV battery manufacturers) moved into the Uyghur Region, in an effort to develop the region’s lithium exploration, mining, and manufacturing," the report said.

"Because the Chinese government has invested vast resources in this unprecedented system of compulsory labor and because that system so clearly contravenes the conventions that govern labor rights internationally, we must examine all supply chains across all tiers," the report said. "This brief demonstrates the extent to which the systematic forced labor of Uyghurs permeates a wide range of industries and goods, but it only scratches the surface. Due diligence strategies and procurement protocols will have to be enhanced with these factors in mind."