October 16, 2023: Forced Labor practices, Assessing Excise Tax, Chinese Company Sanctions Bill
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In today's episode, we’re unpacking some of the most pressing issues at the intersection of commerce, human rights, and legal entanglements. Let's get started!. For today's first story, we take a deep dive into a concerning revelation in the seafood industry, shedding light on how our fish may be linked to China's forced labor practices.
Early this year, a labor transfer program was spotted in Kashgar, a city in Xinjiang, China, where more than eighty Uyghurs, one of China's largest ethnic minorities, stood in lines ready to board a train. They were being sent away to work in industries across China. As recent investigations reveal, this includes processing much of the seafood exported to America and Europe.
As per a story in collaboration with The New Yorker, these labor transfers aren't just economic incentives but are part of China's broader strategy of control, assimilation, and elimination of the Uyghur culture. Xinjiang, where Uyghurs predominantly reside, has long been a hotspot for ethnic tensions. And in recent years, the Chinese government's crackdown on the Uyghur population has intensified.
The numbers are quite alarming. Between 2014 and 2019, Chinese authorities relocated more than ten percent of Xinjiang's population through these labor transfers. That's over two and a half million people.
And it's not just about the numbers. There's a concerning lack of transparency about the conditions in which these workers are employed. Julie Millsap, from the Uyghur Human Rights Project, noted that the state seems to "orchestrate and restrict all aspects of Uyghurs’ lives." Despite this, China's official stance is that allegations of forced labor are just lies propagated against them.
As consumers, we are more connected to this than we might realize. The U.S. imports roughly eighty percent of its seafood, with China being the primary supplier. Despite measures taken in 2021, where the U.S. passed the Uyghur Forced Labor Prevention Act, which effectively bans goods produced by forced labor from entering the U.S., the seafood industry has largely gone unnoticed.
The supply chain complexities in the seafood industry make it difficult to trace the origin of seafood. The seafood-processing hub, Shandong Province, which is located over a thousand miles away from Xinjiang, might have played a part in evading scrutiny. And what's concerning is that thousands of Uyghurs have reportedly been sent to work in seafood-processing factories in Shandong since 2018.
Last February, thousands of Uyghurs were reportedly taken to a so-called "job fair" next to an internment camp in Xinjiang. The result? They became part of the country’s vast labor force. Videos and pictures have emerged of these individuals boarding chartered flights with red celebratory flowers pinned to their jackets.
And it's not just about recruiting. Major seafood companies like the Chishan Group reportedly met with Party officials to discuss how to find additional labor. These interactions suggest a tight relationship between private corporations and state officials.
And these aren’t isolated incidents. Chishan's corporate communications have even indicated their anticipation for "migrant workers from Xinjiang." One must wonder, are these workers coming willingly?
That's the pressing question. Inside these factories, conditions are tough. Described as "semi-military-style management", the lives of these workers from Xinjiang are heavily monitored, from their dormitories to the factory floors.
Add to this, reports of personal searches where items like the Quran can lead to severe consequences such as being sent to a reeducation camp. It’s no wonder Chishan has labeled the management of these workers as a “major” source of risk.
Now, while some factories try to ease the transition with special canteens and festive events, the overall picture isn’t rosy. Eyewitnesses and former workers paint a disturbing image: limited freedom, stringent regulations, and, in extreme cases, even torture.
The voices of the Uyghurs still echo. Some take to social media, posting selfies by the ocean – a symbolic gesture considering Xinjiang's landlocked nature. Others upload songs with sorrowful lyrics, which some experts argue might be subtle messages of suffering.
And then there are those who are a little more direct, revealing their plight through posts like, “waking up at five-thirty every morning, non-stop work, and the never-ending sharpening of knives and gutting of fish.”
It's heart-breaking, especially when you consider the complexities of seafood supply chains. They're notoriously tough to penetrate, making it difficult for international watchdogs to gain full visibility.
So, what about social audits? These are often conducted to ensure compliance with labor standards. But Scott Nova, the executive director of the Worker Rights Consortium, points out a fundamental flaw: these audits aren't designed to detect state-imposed forced labor.
And even if they were, there are hurdles. Many audits are announced beforehand, giving factories a chance to conceal minority workers. Interviews are conducted, but the fear of retribution makes workers hesitant to speak candidly.
And when these audits don't capture the full picture, it paves the way for companies, including U.S. enterprises, to continue working with these suppliers under the guise of compliance.
Recent investigations have revealed that Uyghur forced labor might be behind some of the world’s most consumed seafood. From cod to salmon, from shrimp to crab, there's a chance that the seafood on your plate has been processed by an oppressed minority in China.
The auditors, including those from globally recognized firms, often missed these glaring issues. For instance, half the Chinese exporters identified as tied to Uyghur labor had previously passed global inspections.
Disturbingly, many of these seafood plants were even certified by the Marine Stewardship Council.
And that's a concern. These audits and certifications give consumers a false sense of security. We've seen this before, like in the garment industry in South Asia, where social audits missed rampant sexual abuse cases. The system, as it stands, is flawed.
The aftermath? Thousands of tons of seafood from these factories have made their way into major U.S. and Canadian retail chains. Walmart, Costco, Kroger, Albertsons – they’ve all possibly been recipients.
And it's not just a North American issue. The ripple effect is global. Importers with ties to Uyghur labor supply the largest fish-processing factory in the world in Germany. This seafood ends up in grocery chains across Europe.