Multinational companies under scanner for alleged role in Uyghur forced labor

BERLIN, Germany – A number of multinational corporations are facing scrutiny for their alleged role in Uyghur forced labor.

Three organizations have filed a complaint with German authorities alleging that Volkswagen, Mercedes-Benz, and BMW have failed to eliminate forced labor in the production of their automobiles in China.

Many human rights groups have documented that Uyghurs, natives of Xinjiang province of China have been detained in camps and forced to labor in factories in dreadful conditions.

The U.S. House Select Committee on China has released a report stating that Temu, a China-based online retailer, has failed to maintain a meaningful compliance program to combat forced labor.

Uniqlo’s parent company, Fast Retailing, and Inditex, the owner of Zara, are facing a lawsuit filed by The European Uyghur Institute and other non-governmental organizations for disregarding abuses in Xinjiang and profiting from forced labor.

China has faced severe international criticism for its egregious rights violations against the Uyghur minority.

Western governments are taking action against companies implicated in Uyghur forced labor, supported by recent legislation aimed at halting such practices.

 The accused companies have defended their operations, claiming that they strictly uphold human rights standards in their supply chains.

 However, critics argue that it is difficult for companies to fulfill their human rights due diligence due to the impossibility of conducting independent factory audits in Xinjiang.

 A report by Sheffield Hallam University in the U.K. has revealed the pervasive presence of forced labor throughout the entire Uyghur automobile supply chain.

The European Center for Constitutional and Human Rights (ECCHR) has referred this report while filing a complaint in Germany.  

“While companies like Volkswagen may deny their direct use of forced labor, our inquiry focuses on whether they can guarantee that their suppliers refrain from employing Uyghur forced labor,” said Yalqun Ulughyol, a researcher at Sheffield Hallam University. 

 Volkswagen operates a joint venture factory in Urumqi, the capital of Xinjiang, with its Chinese partner SAIC Motor Corp.

 The ECCHR argues that multiple reports consistently confirm the impossibility of conducting independent factory audits, making it challenging for companies to fulfill their human rights due diligence.