Washington, D.C.: A recent scandal has exposed the presence of banned products in the supply chains of major automakers like BMW, Jaguar Land Rover, and Volkswagen, revealing the use of forced labor by Uyghur people in China’s Xinjiang region. These companies continued to import components despite being informed about the involvement of forced labor.

The United States has made it illegal to import goods produced by forced labor. The Uyghur Forced Labor Prevention Act (UFLPA), enacted in 2021, prohibits the importation of goods from Chinese companies that violate labor laws. This legislation specifically targets the exploitation of Uyghur people in Xinjiang, where forced labor is widespread.

A report titled "Insufficient Diligence: Car Makers Complicit with CCP Forced Labor" revealed that automakers have been importing thousands of vehicles made with parts from Chinese companies banned under the UFLPA. These parts, known as LAN transformers, were sourced from a group banned by the U.S. in December 2023.

“The brutal oppression of ethnic Uyghurs in Xinjiang by the Chinese Communist Party, which includes systemic forced labor, has been classified by the State Department as genocide and a crime against humanity,” the report stated. The Chinese government has been accused of forcibly reducing the birth rate among Uyghurs and restricting their cultural and religious practices. Over one million Uyghurs and other Muslim minorities have been detained in "re-education centers," many of which have been converted into high-security prisons where detainees face physical violence, forced drug intake, abuse, and torture to compel them to work.

The U.S. has long prohibited goods produced with forced labor from entering its market under Section 307 of the Trade Act of 1930. The UFLPA, enacted under President Joe Biden, strengthens these restrictions by creating a presumption that goods from Xinjiang or from entities on the UFLPA Entity List are made with forced labor, thus banned from import unless clear evidence proves otherwise. This presumption extends to components, subcomponents, and raw materials.

Automakers have attempted to overcome this presumption by conducting on-site audits and using third-party auditors to verify that their products do not involve forced labor. However, these audits face significant obstacles from Chinese authorities, who impose restrictions that make reliable audits difficult. The requirement for advance notice of audits, for instance, limits the ability to conduct random inspections that would more accurately reflect working conditions.

“Companies disclosed that although they conduct audits within China, they understand (and adhere to) CCP restrictions that make conducting reliable audits difficult or impossible,” the report stated. Automakers also rely on questionnaires and self-reporting from suppliers, which are insufficient to identify forced labor in supply chains in China.

Reports from the New York Times highlighted that Chinese officials force Muslim minority villagers into jobs, imposing quotas and penalizing families that fail to comply. These forced labor programs are part of a broader effort by Chinese President Xi Jinping to exert control over Xinjiang, where Uyghurs make up about half the population. These programs, along with indoctrination camps holding over one million Uyghurs and Kazakhs, aim to re-engineer minority communities into compliant workers loyal to the Communist Party of China.

Villagers undergo military-style training to become obedient workers. The Chinese government justifies these programs by claiming they help to eliminate poverty and prevent religious extremism and ethnic violence by employing "surplus labor."

The international community must address these human rights abuses and hold accountable companies that benefit from forced labor in their supply chains. The scandal underscores the urgent need for transparency and stringent oversight to ensure that global supply chains are free from exploitation and human rights violations.