US firms aiding China’s human rights violations under scrutiny at Congress hearing.

U.S. Corporations Complicit in Human Rights Abuses by Chinese Communist Party, Witnesses Say

Witnesses at a hearing held by the Congressional-Executive Commission on China (CECC) on Tuesday revealed that U.S. corporations are complicit in human rights abuses by the Chinese Communist Party (CCP) and pose national security risks by complying with the CCP’s demands. Rep. Chris Smith (R-N.J.), the commission chair, highlighted the CCP’s record of state-sanctioned genocide, torture, rape, forced abortion, and forced organ harvesting. He emphasized the need for American companies and consumers to stop subsidizing tyranny and expressed concerns about the CCP military’s growth as a security threat to the United States and the Asia-Pacific region.

Strengthen Enforcement of New Law

The CECC’s signature initiative against corporate complicity is the Uyghur Forced Labor Prevention Act (UFLPA), enacted in December 2021. This law prohibits the entry of goods made with forced labor in China’s Xinjiang into the U.S. market. U.S. Customs and Border Protection (CBP) began enforcing the law in June 2022, resulting in the interception of over 4,000 shipments valued at about $1.4 billion in the first year. CBP has processed approximately half of these shipments, with a rejection rate of about 30 percent. Malaysia is the top country of origin for these shipments.

The UFLPA prohibits the entry of items manufactured wholly or in part in Xinjiang or imported from companies on the entity list, which currently includes 22 Chinese companies. Robert Silvers, under secretary for policy at the U.S. Department of Homeland Security, assured the commission that the Forced Labor Enforcement Task Force would leverage artificial intelligence and machine learning to determine the true origin of goods. He acknowledged the challenge of reviewing shipments below the $800 de minimis threshold but mentioned ongoing efforts to modernize cargo review and processing.

Milwaukee Tool Alleged to Be Using Chinese Forced Labor

During the hearing, Shi Minglei, the wife of Chinese human rights activist Cheng Yuan, testified about a potential slave labor case outside of Xinjiang. She mentioned that her husband had worked at a factory in Hunan Chishan Prison, where gloves are made for Milwaukee Tool, an American brand. Although she couldn’t confirm his involvement in making Milwaukee Tool gloves, she described the harsh conditions he endured. Shi Minglei contacted major sales channels for Milwaukee Tool, including Walmart, Home Depot, and Amazon, to raise awareness of the issue. While Walmart discontinued carrying the gloves, Home Depot and Amazon continue to sell them.

Corporations ‘Kowtow to Xin Jinping on a Daily Basis’

Enes Kanter Freedom, a former NBA player, shared his experience of facing consequences for criticizing China’s human rights record. He expressed disappointment that none of his former teammates or coaches reached out to support him after his release. Kanter Freedom explained that they were afraid of losing endorsement deals if they were associated with him. The NBA’s deep business ties to China, with over $10 billion invested by 40 NBA owners, raise concerns about corporations prioritizing their interests over human rights.

Isaac Stone Fish, a visiting fellow at the Atlantic Council, highlighted similar concerns in the defense industry, emphasizing the need for American military companies to act in the best interests of the American people rather than complying with the CCP’s demands.