A screenshot from this report. Note, Uyghur and Uighur are both acceptable spellings.
Nike, Coca-Cola, and others oppose a bill that would limit trade with companies that take advantage of forced labor in China. This is a particularly large problem, as Uyghur Muslims in China are currently targets of the state. The country has been rounding them up, sending them to camps, and forcing them to work in factories around the country. Those going to work are the “lucky” ones. Others are beaten, tortured, raped, sterilized, and killed. Supporting programs that force these people to work in factories also supports China’s attempts at genocide. So far, they’ve gone largely unchecked.
Apple, Nike, and many others benefit from this forced labor. Some companies have lobbied to block or weaken a bill that would prevent U.S. companies from using forced labor in their supply chains. One of those companies is Apple, who is fighting to strengthen some aspects, while weakening others.
We’re at a time when large corporations are coming out in favor of forced labor of religious minorities who have been rounded up, sent to camps, and killed on a large scale. Anyone else feeling like it’s getting a little like 1930’s Germany in here?
Uyghur Forced Labor Prevention Act
Barbed wire fences, watch towers, and facial recognition define the factories. Photo: Anna Fifield/The Washington Post
A resolution that passed in the House in September seeks to block reliance on companies that are using forced labor. China has been rounding up and “arresting” Uyghur Muslims in the Xinjiang region for “crimes” related to practicing their religion. China claims it’s an anti-terrorist effort, but they’re rounding up entire families and neighborhoods. They’re also forcing these supposedly dangerous people into factory work around the region and elsewhere in China. As a result, factories in the area that supply many large brands have begun to look more like prison camps than factories, complete with high walls, barbed wire, and guard towers.
The bill requires that goods coming from or manufactured in Xinjiang will need verification that convict or forced labor was not used during the manufacturing or supply process. The bill would require Customs and Border Protection (CBP), yes, that CBP, to verify that the goods are not coming from forced labor camps. No company using forced labor would be able to import their products, reducing demand for forced labor and perhaps contributing to the freedom of China’s Muslim population.
Apple’s Role
Some of Apple’s suggestions wouldn’t help the implementation of the bill. For example, a public list of the factories and suppliers a company uses would allow third parties to verify whether or not a company had, knowingly or not, violated the import ban. However, such a law would require Apple share its coveted supply chain with competitors, possibly cutting into its profit margins. Instead, Apple is suggesting that they could share this information only with congress. This way, congress could still verify that companies aren’t using forced labor, without requiring they give up trade secrets.
Apple also wants the U.S. government to compile a list of companies that make use of forced labor. They’d rather this than requiring self-reporting. This would both be beneficial for Apple, as it cuts down on their costs of inspecting suppliers, but also ensures that there’s one source of truth for all U.S. companies. There will be one list for everyone to avoid, rather than requiring companies to do their own research, which may not always be accurate.
Finally, Apple’s looking to extend deadlines for compliance. This is the part that has earned Apple the accusation that they’re “watering down” the bill. The criticism is well-earned. Apple wants to be able to avoid any production delays from changing manufacturers or suppliers. Think about what they’re asking for. “Please, U.S. government, just let us use slave labor a little bit longer, so we can get the iPhone out on time!”
I think people can wait.
Apple claims they’re already working to terminate any contracts with suppliers using forced labor. They say they have not found the alleged forced labor in their supply chain, contrary to the report that said otherwise. Clearly they haven’t been able to find them all. Earlier this year, a report showed that at least one of Apple’s suppliers was using forced labor.
Nike, Coke, and Others?
Nike claims they no longer use any factories in the Xinjiang area. Coca-Cola says they’ve audited one of their sugar suppliers in the region. However, both companies have lobbied to change or block this bill. Neither have explained why. Do they know they’re using forced labor, or are they unwilling to change their supply chains, even if it means potentially using forced labor?
The Xinjiang region produces many raw materials used in goods across business categories, like, sugar, cotton, polysilicon, and more. Companies using products from this region contain clothing manufacturers like Adidas, Calvin Klein, H&M, Patagonia, and Tommy Hilfiger. However, you’ll also find food and produce companies, like Coca-Cola, Campbell Soup Company, and Costco. A previous report mentioned car manufacturers like BMW and Mercedes. Of course, nearly every electronics manufacturer, LG, Sony, Apple, Dell, HP, Lenovo, and others are or were dependent on materials from Xinjiang. These companies mostly claim to have taken individual action to “prevent” forced labor in the supply chain, but their opposition to the bill suggests they’re not so sure about that.
Nike, after facing scrutiny, said they were not trying to block the bill, but were suggesting changes. Coca-Cola merely said they have already “adopted best-in-class disclosures practices.”
Yeah, I didn’t find that reassuring either.
Bill Changes and Senate, Presidential Approval
Normally, when a bill passes through the majority Democratic House, on its way to the Senate, it’s dead on arrival. The Senate has a Republican majority, and they’re dead-set on blocking anything the Democrats do. But it seems they drew the line at Uyghur slave labor. A low bar, to be sure, but one they thankfully didn’t duck under.
The Uyghur Forced Labor Prevention Act passed through the house with a vote of 406 to 3 in favor of the bill. With bipartisan support, it’ll likely pass through the senate as well, whenever they decide to look at it. From there, it’ll go to the President for approval. That’ll be either President Trump or President Elect Biden. Trump, while Islamophobic, has made his negative opinion on China well known. Biden, on the other hand, would have his party to answer to if he suddenly came out in favor of forced labor. Therefore, it’ll surely become law. Eventually.
The Senate may request changes that companies like Apple have proposed, send it back to the House for another vote. It’s unlikely that they’d suggest any changes that would cripple the bill. The legislative process in the United States is slow. Just ask anyone who needed Republicans to focus on passing a COVID relief package more than they needed a Handmaid in the Supreme Court. However, this could pass before the end of 2021. Hopefully it passes sooner.
Things will only get worse for the Uyghurs. China’s currently incentivized to get as much forced labor as they can. This could be a large step forward to cutting off the profitability of forced labor. From there, it could push the U.S. and other countries to finally take step they should have taken months, perhaps years ago: sanction China over these human rights abuses.
Sources:
- Reed Albergotti, The Washington Post
- H.R.6210–116th Congress
- Ben Lovejoy, 9to5Mac, [2]
- Mike Peterson, Apple Insider
- Ana Swanson, The New York Times