Several car manufacturers have faced criticism for importing vehicles or auto parts from Chinese suppliers who may have used forced labour in Uyghur communities. These suppliers include BMW, Jaguar Land Rover, and Volkswagen.
Importing products made using forced labour is now prohibited in the US. This is particularly problematic for the Turkic Uyghur population in northwest China’s Xinjiang province, where there are allegations that the Chinese government and businesses are using them as forced labour.
In 2021, the Uyghur Forced Labor Prevention Act (UFLPA) was created by the US in order to further enforce this. It forbids several Chinese organisations from breaking labour regulations.
Recently, a US Democratic staff investigation titled “Insufficient Diligence: Car Makers Complicit with CCP Forced Labour” discovered that Bourns Inc., a supplier to BMW and Jaguar Land Rover, allegedly imported thousands of cars into the US using parts that were manufactured by organisations prohibited under the UFLPA.
US embargo in effect as of December 2023
The components, which are referred to as LAN transformers, were from Sichuan Jingweida Technology Group (JWD), which the US has prohibited since December 2023. These were found in cars that were supposed to be sold in the US this year. An estimated 8,000 BMW Mini Cooper vehicles are anticipated to include prohibited parts as well.
Volkswagen willingly disclosed the presence of the prohibited parts in a specific shipment of its cars.
BMW has already faced criticism for their contentious heated seat subscription program and for producing significantly more nitrogen oxide in its vehicles than was detected in laboratory testing.
Due to defective exhaust filters in its diesel vehicles, Jaguar Land Rover has also come under fire. As a result, customers may be able to sue the automaker for £3 billion (€3.51 billion).
Could the UFLPA Bill worsen ties between China and the US?
Recent months have been a noticeable thaw in relations between China and the US because of the ongoing cold war surrounding semiconductors and artificial intelligence (AI). As a result, the US has banned a number of tech firms, including Intel and Nvidia, from selling high-performance chips to Chinese firms like Huawei.
According to Wang Wenbin, a spokesman for the Chinese Foreign Ministry, as quoted by the BBC, “The US’s so-called Uyghur Forced Labor Prevention Act is about producing unemployment, not forced labor. It damages the people of Xinjiang’s rights to employment and existence while disguising its lack of human rights protection.
“China vehemently denounces and opposes this. We are going to take action to firmly protect Chinese firms’ legitimate rights and interests.”
US dissatisfied with automakers’ self-policing strategy
“Automakers are sticking their heads in the sand and then swearing they can’t find any forced labour in their supply chains,” stated Senator Ron Wyden, a Democrat from Oregon, in a statement.
He went on to add that, for whatever reason, the oversight staff of the Finance Committee discovered what seemingly could not be discovered by multibillion-dollar corporations: that VW AG produced automobiles, Jaguar Land Rover imported parts, and BMW imported cars all contained parts manufactured by a supplier prohibited from utilising Uyghur forced labour.
“Automakers’ self-policing is clearly not doing the job. I’m calling on Customs and Border Protection to take a number of specific steps to supercharge enforcement and crack down on companies that fuel the shameful use of forced labour in China.”
Closing thoughts
The investigation into BMW, Jaguar Land Rover, and Volkswagen using parts from prohibited suppliers under the Uyghur Forced Labor Prevention Act (UFLPA) highlights serious flaws in corporate supply chain oversight.
Despite claims of self-policing, forced labour components have been found in vehicles intended for the US market, revealing inadequate measures. This issue risks escalating US-China tensions amid ongoing trade conflicts.
As scrutiny and enforcement tighten, the automotive industry must strengthen its supply chain protocols to comply with human rights standards, avoid forced labour complicity, and protect its reputation and market access.
(Tashia Bernardus)