China Continues to Use Forced Labor in Goods Exported to US, US-China Commission Says
While the Trade Facilitation and Trade Enforcement Act’s elimination of the “consumptive demand” loophole for child and forced labor imports has helped slow the flow of such goods, "the Chinese government continues to use forced labor to produce exports destined for the United States, in violation of U.S. law and bilateral trade agreements," according to a report by the U.S.-China Economic and Security Review Commission. Visibility within China remains an issue, it said. No ICE agents have been allowed to make site visits in China since 2009 and there's indication "forced labor continues to occur at these sites but under a different penal framework," the report says.
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The commission noted there are few corporate disclosure requirements involving forced labor. "Federal legislation mandating not only disclosure of corporate anti-forced labor efforts but also taking certain steps to eliminate forced labor components from supply chains based on internal corporate investigations could help reduce the United States’ vulnerability to forced labor exports from China," it said. CBP has issued four withhold release orders (WROs) against Chinese companies since TFTEA entered into force in February 2016 (see 1603310034, 1605310019 and 1609190019). Tangshan Sunfar Silicon Industries and Tangshan Sanyou Group and subsidiaries, which were subject to a WRO last year, “appear to have since closed,” it said.