A US congressional investigation discovered that BMW, Jaguar Land Rover (JLR), and Volkswagen bought auto parts from a Chinese supplier linked to forced labor in Xinjiang, which the Senate Finance Committee has been keeping on the radar for the past two years.

Chinese JWD Parts Linked to Uyghur's Forced Labor

China has long faced allegations of detaining hundreds of thousands of Uyghur Muslims from Xinjiang in internment camps and coercing them into labor within various manufacturing sectors, which points to systemic persecution of the natives. According to the investigation, the car manufacturers sourced parts from the Chinese supplier JWD, which is believed to be using forced labor in China's Xinjiang province. 

As per the Senate finance committee probe, BMW and Jaguar Land Rover persisted in procuring parts from the Chinese supplier for the US market despite being alerted about the banned products in their supply chain. After receiving written notification regarding the forced labor connections, BMW still exported a minimum of 8,000 Mini vehicles with the implicated auto part to the US. Meanwhile, Volkswagen voluntarily informed US authorities that certain parts sourced from JWD were used in its cars, facilitated by two contractors, California-based Bourns Inc. and Michigan-based Lear Corp.

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The Uyghur Forced Labor Prevention Act

Senator Ron Wyden, hailing from Oregon and serving as the chair of the Senate Finance Committee, launched the inquiry in 2022. The Uyghur Forced Labor Prevention Act, passed in 2023, bars the importation of goods from China's Xinjiang region unless importers can verify that forced labor was not employed in the products' creation. Wyden expressed concern that the automakers' self-regulation efforts are inadequate and urged US border authorities to enhance enforcement measures to prevent goods containing sanctioned components from entering the country. In December 2023, JWD, the supplier implicated in the report, was added to the list of entities using forced labor in Xinjiang, as reported by The New York Times.

The Lan Transformer In Question

A Lan transformer, The component in question, facilitates communication among a vehicle's electronic components. While not directly procured from the Chinese supplier, it was included in an electronic unit obtained from Lear Corp, a supplier of automotive electronic systems. Lear asserted that it acquired the part through a different supplier and promptly notified its customers, including BMW, Jaguar Land Rover, and Volkswagen, upon discovering the connection between its sourcing and the forced labor list.

Volkswagen acted swiftly by arranging to replace the part at US ports. However, BMW continued importing the part until at least April 2024, when the Senate committee pressed BMW repeatedly for answers. BMW stated that it had taken all necessary measures to address the issue with the vehicle part.

BMW emphasized its adherence to strict standards and policies regarding employment practices, human rights, and working conditions, which are required for all direct suppliers. On the other hand, Jaguar Land Rover continued importing the part until April 2024 but did not comment on the inquiry.

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