A recent report released by Human Rights Watch has highlighted concerns regarding major automakers' potential use of forced labor in their China supply chains. Companies such as Tesla, General Motors, Volkswagen, and Toyota have been linked to the use of aluminum allegedly produced with forced labor by Uyghurs and other ethnic minorities in China's Xinjiang region.
China has faced accusations of running labor transfer programs, where Uyghurs and Turkic minorities are forced to work in factories as part of a campaign of assimilation and mass detention. A United Nations report in 2022 found evidence suggesting that China may have committed crimes against humanity in Xinjiang, with over one million Uyghurs estimated to have been arbitrarily detained. The Chinese Foreign Ministry has not yet responded to the report.
Human Rights Watch examined company statements, Chinese government documents, and previous research to establish a link between the use of forced labor and the production of aluminum, a material widely used in various car parts. Workers in the labor transfer programs reportedly endure ideological indoctrination and limited freedom of movement. Since 2022, the United States has required importers of goods produced in Xinjiang to prove that they were not made with forced labor, in order to avoid penalties.
One of the challenges highlighted in the report is the difficulty of tracing the origin of aluminum from Xinjiang, especially when it is shipped to other parts of China and used in the production of alloys. Industry reports suggest that more than 15% of China's aluminum supply and around 9% of the global supply originate in Xinjiang. The automotive industry heavily relies on aluminum for various parts, including vehicle frames, wheels, and battery foils.
China has become the world's largest car exporter and is a major manufacturer of battery-powered electric vehicles. The companies mentioned in the report, including Tesla and Chinese electric vehicle giant BYD, are influential players in the global car industry. The demand for aluminum is projected to double between 2019 and 2050, driven in part by the increasing popularity of electric vehicles.
The report emphasizes the responsibility of governments to ensure that companies operating in China's automotive industry do not benefit from or use forced labor in their supply chains. It alleges that foreign carmakers have succumbed to Chinese government pressure, allowing relaxed control of their operations in China compared to other countries, thereby increasing the risk of forced labor within their supply chains. Most foreign carmakers in China operate as joint ventures with Chinese firms due to government restrictions.
In response to the report, Toyota stated that it would closely review the findings, emphasizing its commitment to human rights. Volkswagen highlighted its risk management system for due diligence in procuring raw materials, stating that it investigates allegations of forced labor and seeks new solutions to prevent it in its supply chains. General Motors, Tesla, and BYD did not immediately respond to the allegations.
Tesla, which owns a factory in Shanghai producing cars for the Chinese and international markets, informed Human Rights Watch that it had traced its supply chain back to the mining level and had not found evidence of forced labor. However, the company did not disclose the extent to which its aluminum may come from unknown sources linked to Xinjiang.
In addition to the report's findings, the Xinjiang government recently implemented stricter rules governing religious expression as part of a larger campaign to Sinicize the predominantly Muslim Uyghurs. These rules tighten controls over religious schools and dictate that Muslims can only perform the Hajj pilgrimage as part of a group organized by the official Islamic Association of China. They also restrict the receipt of alms from abroad.
As concerns about forced labor persist, companies operating in China's automotive industry face increasing pressure to ensure their supply chains are free from unethical practices. The report by Human Rights Watch serves as a call to action for both automakers and governments to address these issues and prevent the exploitation of vulnerable labor populations.
