There’s been lot of talk of about use of forced labour in China’s Xinjiang region in recent times, and once again the issue seems to have hogged the limelight.
As per the Sandler, Travis & Rosenberg (ST&R) trade report, the US Government, earlier this week, stepped up its efforts to persuade businesses to exit supply chains that are linked to China’s Xinjiang Uyghur Autonomous Region (XUAR) over the forced labour issue.
In an updated business advisory issued on 13 July (Tuesday), strong warnings have been given about doing businesses in the XUAR – especially with regard to specified industries.
The advisory has warned businesses, individuals and others (investors, labour brokers, consultants, amongst others) that if they do not exit supply chains and/or investments related to Xinjiang, they could run the risk of violating US law, and triggering criminal/civil enforcement action.
The advisory has also urged businesses and individuals to undertake heightened human rights due diligence to identify potential supply chain links to entities operating in Xinjiang, linked to
Xinjiang or using Uyghur or other ethnic and Muslim minority labourers from Xinjiang.
Amongst several industries, identified by the advisory, which are at risk concerning the use of forced labour in Xinjiang are cotton, cotton yarn, cotton fabric, ginning, spinning mills, and cotton products, textiles (including apparel, bedding, carpets, wool and viscose) and footwear.
The advisory has added that the list is non-exhaustive.