Global Automotive Industry Faces Scrutiny over Labor Abuses in China’s Xinjiang Province
Dec 13 | Written By - Allen Campbell, JD, MBA - www.linkedin.com/in/allencampbelljdmba
Forced labor practices that oppress the Uyghur Muslim minority are normal in Xinjiang Province, according to many well-informed observers. A new study has found extensive business connections among global automobile manufacturers and their parts suppliers with operations there. This report could result in serious consequences for the auto industry.
Labor abuse has long been top-of-mind for human rights advocates. The United Nations estimates that forced labor, a form of “modern slavery”, affects 28 million people worldwide.
In response to international outrage, many governments have enacted or are considering laws intended to end forced labor:
In the United States, the Uyghur Forced Labor Prevention Act assumes that products made wholly or partly in Xinjiang are produced with forced labor, and they are subject to seizure if they are brought into the United States. California has its own legislation on this subject.
Outside the US, there is enacted or pending forced labor legislation in:
United Kingdom (Modern Slavery Act)
France (Duty of Vigilance Law)
Germany (Supply Chain Due Diligence Act), effective January 1, 2023
Australia – legislation at the national (Commonwealth) and state (New South Wales) levels.
Canada – legislation pending
Brazil – various legal provisions
Norway – legislation under consideration
Netherlands – in process
New Zealand – proposed
European Union (Corporate Sustainability Due Diligence law) – currently being negotiated by the European Council and the European Parliament. This landmark legislation will have major global effects.
The research effort was led by Professor Laura Murphy, an expert in human rights and contemporary slavery at Sheffield Hallam University. There are no human rights violations in Xinjiang, according to the Chinese government.