Due diligence efforts in disarray due to China’s forced labor transfer program
The U.S. Labor Department has raised concerns about China’s expanding labor transfer program, which relocates forced laborers from the Uyghur Region to other parts of the country. Thea Lee, deputy undersecretary for international affairs at the U.S. Labor Department, highlighted the significant growth of the program, emphasizing its potential to circumvent U.S. supply-chain crackdown efforts.
The U.S. Congress has taken steps to address human rights abuses against Uyghurs and other Muslim minorities in China, including the passage of the Uyghur Forced Labor Prevention Act (UFLPA), which restricts imports from the region.
Labor transfers more prominent
Since the UFLPA came onstream in 2022, due diligence efforts have focused on screening out suppliers located in the Uyghur Region where detention and forced labor camps abound. However, state-run transfer programs are sending Uyghurs to factories around the country, making it “impossible”, according to Lee, for companies to effectively trace the presence of forced labor in their supply chains.
“I have not seen an effective way to address the challenges of monitoring the labor transfer program of workers outside of Xinjiang.”
For years, the Chinese government has covertly relocated tens of thousands of Uyghurs across China, loaded onto trains, planes, and buses, to factories supplying multiple sectors including garments, cars, seafood and electronics. This concealed coercion not only exploits human rights but also strategically distances the laborers from international scrutiny.