According to a Human Rights Watch report released on Thursday, forced labor is not part of the supply chains of automakers Tesla, General Motors, Volkswagen, and Toyota in China.
The U.S.-based nonprofit connected aluminum to major car manufacturers, being allegedly produced with forced labor by Uyghurs, a mainly Muslim ethnic minority of around 10 million people in the western region of Xinjiang and other ethnic minorities in other areas of the country.
Accusation on China's Labor Transfer Programs
China is being accused of implementing labor transfer programs where Uyghurs and other Turkic minorities are compelled to work in factories as part of a longstanding assimilation and mass detention campaign, where China might have detained over 1 million Uyghurs as part of terrorism and separatism measures, according to a 2022 United Nations report.
The Chinese Foreign Ministry did not respond immediately to questions about the report sent by fax from The Associated Press.
A Report Connecting Aluminum to the Labor Transfer
The Human Rights Watch report connects aluminum, a material used in many car parts, to the labor transfer programs where workers allegedly undergo ideological indoctrination and have restricted freedom of movement, drawn from company statements, Chinese government documents, and previous research by Human Rights Watch and other organizations.
Since 2022, the United States has mandated importers of goods from Xinjiang to provide evidence that the products were not manufactured using forced labor to avoid penalties. However, the Human Rights Watch report argues that tracing the origin of aluminum from Xinjiang is challenging, mainly when it is transported to other parts of China and processed into alloys.
China Being the Top Car Exporter Globally
Over 15% of China's aluminum supply and around 9% of the global supply come from Xinjiang, as per industry reports, which the global automotive industry utilizes for various parts, including vehicle frames, wheels, and battery foils.
China, the largest producer of battery-powered electric cars, also became the top car exporter globally last year. The companies mentioned in the new report include Chinese electric vehicle giant BYD. The International Aluminum Institute, a UK-based industry group, forecasts a doubling global demand for aluminum between 2019 and 205 due to the increasing popularity of electric vehicles.
Human Rights Calling the Attention of the Government
Jim Wormington, a senior researcher at Human Rights Watch, emphasized that China is a dominant player in the global car industry. Governments need to ensure that companies involved in car manufacturing or sourcing parts in China are not linked to the government's repression in Xinjiang, adding that conducting business in China should not entail using or benefiting from forced labor.
The report claims that international car manufacturers, under pressure from the Chinese government, have relaxed control over their operations in China compared to other countries, which increases the risk of forced labor in their supply chains. Many foreign carmakers in China function as joint ventures with Chinese companies, compelled by government restrictions in key sectors.
Carmakers' Stance on the Issue
Toyota announced in a statement that it will carefully examine the Human Rights Watch report, emphasizing that "respect for human rights" is a fundamental part of its core values. It expects its suppliers to adhere to its commitment to respect and not violate human rights.
Volkswagen mentioned having a risk management system for due diligence in raw material procurement, directly commissioning its China suppliers. The company promptly investigates any forced labor allegations and actively seeks new solutions to prevent them in its supply chains.
Volkswagen has a joint venture with Chinese state-owned carmaker SAIC Motor, operating a plant in Xinjiang. An audit conducted by the German carmaker last year found no evidence of forced labor at the Xinjiang plant.
