The US Government is taking steps to combat forced labor

It has been reported that a large number ethnic Uighurs may be working in labor camps in the Xinjiang region under confined conditions. Given the extensive trade links between the US and China, some US lawmakers are worried that products produced using forced labor may be ending up in the US stream of commerce. This has prompted recent government activity to prevent this.

US companies are already prohibited from importing products made using forced labor. However, it is extremely difficult to confirm whether products which are produced in regions like Xinjiang have been made using forced labor. In fact, some auditing firms have stopped performing supply chain audits in China altogether due to difficulties in certifying information.

This indicates that the problem may be so widespread that more aggressive action is required to reduce the possibility that products made using forced labor ultimately end up being purchased by US consumers.

In the Executive branch, the US Customs and Border Protection has taken steps to block the importation of some products produced in the Xinjiang region such as apparel, hair products and computer parts.

The Legislative branch has also proposed legislation targeting forced labor in Xinjiang - with the House of Representatives proposing two separate bills to address this problem in September 2020.

Rep. Jim McGovern (D-Mass.) proposed a bill to ensure that imported goods from Xinjiang were not produced using forced labor. This bill has found strong bipartisan support, receiving a majority vote of 406-3.

Sen. Marco Rubio (R-Fl.) has also proposed a companion bill in the Senate which "requires corporations to prove with “clear and convincing evidence” that any products imported into the United States and sourced from Xinjiang are not made with forced labor".

Following the passage of the McGovern bill, Rep. Jennifer Wexton (D-Va.) sponsored a separate bill which would "require publicly traded companies in the U.S. to disclose whether any of their goods — or any part of their supply chain — can be traced to internment camps or factories suspected of using forced labor of Muslim Uighurs or other ethnic minorities in China".

It will be interesting to see what legislation will eventually be approved by both chambers and presented to the President. There have been reports that a few companies and trade organizations have attempted to weaken some of the requirements which would burden their ability to import products from China - but certainly everyone is in agreement that steps must be taken to ensure that products produced using forced labor do not find their way into the global economy.

It is not feasible to simply ban companies from importing products from China altogether - but there must be concrete steps taken to ensure that products which are destined for the US are not tainted by the practice of forced labor.

Importantly, this legislation would set a standard applicable to the entire industry - rather than simply allowing the market participants to choose to take their own steps to combat forced labor. Scholars have noted that it is vital that regulators set a baseline for good practice rather than merely relying on social enterprises to unilaterally take pro-social steps, as this may leave them at a competitive disadvantage.

We will continue monitoring the progress of this legislation.

Disclaimer: The information in this article is provided for informational purposes only. You should consult with an attorney before you rely on this information. This information should not be seen as legal advice and does not create an attorney-client relationship. This article is meant to be a general discussion and may not include all relevant information regarding the issues covered.