Many western fashion companies have remained silent when it comes to the Chinese government’s stance on local issues, fearing they will lose favor in one of the world’s most powerful and fastest-growing consumer markets or access to a critical manufacturing hub in your supply chains. But on the issue of Uighur forced labor, a change is looming, as is the new US legislation. A bill introduced in Congress this spring would allow any Xinjiang product to be presumed to have been made using forced labor, and that only those for which the companies could provide “clear and compelling evidence” could otherwise be imported.
H&M, for example, said it did not work with any garment manufacturing industry in Xinjiang. The Swedish retailer said it was reviewing its indirect business relationship with yarn producer Huafu, with which H&M suppliers worked in other Chinese regions, although they did not obtain materials from its Xinjiang factory. A spokeswoman also said that, until now, H&M suppliers had obtained cotton from Xinjiang farms connected to the Better Cotton Initiative, which now does not license Xinjiang cotton.
Transparency in the fashion supply chain has become a hot topic in recent years, with a particular focus on “tier one” factories where final garment assembly takes place. But workplace abuse and polluting practices also abound in raw material and yarn production, and are more difficult areas for Western companies to audit, even in China.
Labor subcontracting means that several companies can participate in the production of an article. Therefore, forced labor could happen at many points, including during cotton growing and harvesting, yarn and cloth production, and manufacturing of the finished article. According to some industry insiders, even if more clothing retailers commit to Xinjiang’s recall pledge, many will struggle to track the extent to which production of their products may be tainted.
“Businesses will need to dramatically increase their ability to trace their supply chains back to their source to understand the risk of forced labor linked to Xinjiang,” said Amy Lehr, director of the human rights initiative at the Center for Strategic and International Studies, who has investigated work in Xinjiang. “Most can’t do this right now.”
“The other challenge for brands is that, until there is more access to Xinjiang, they cannot carry out their normal due diligence on the ground to find out whether there is forced labor there or not,” Lehr added.
