Taipei, Taiwan – Leading car manufacturers, including General Motors, Toyota, Volkswagen, Tesla, and BYD, are at significant risk of utilizing aluminum produced through forced labor in China’s Xinjiang province, as per a report by Human Rights Watch (HRW).
China stands as the largest car manufacturer globally and the top producer of aluminum, which is a crucial component in various automotive parts such as tires, windshield wipers, and electric vehicle (EV) batteries.
As much as one-fifth of China’s aluminum is produced in Xinjiang, where it is believed that over one million ethnic minority Muslims have been subjected to forced labor, internment, and forced sterilization, according to human rights groups.
HRW’s 99-page report released on Thursday highlighted a lack of action by carmakers to track their supply chains in China, with some succumbing to Chinese government pressure to apply weaker sourcing standards at their Chinese joint ventures than in their global operations. The report also indicated that carmakers are largely unaware of the extent of their exposure to forced labor, thereby raising concerns about the potential presence of links to abuses in Xinjiang in the vehicles produced.
China has faced allegations of introducing an aggressive program of forced assimilation against Uighurs and other ethnic minority Muslims, leading to the internment of more than a million people. China has denied these accusations and insisted that its programs have aimed to reduce radicalization and terrorism.
The report further noted that tracing supply chains in China is a complex task and underscored the need for car manufacturers to enhance efforts in mapping their supply chains or exert pressure on their joint partners in China to do the same.
At the time of the report’s release, General Motors, Toyota, and BYD did not respond to inquiries, while Volkswagen stated that it has “no transparency about the supplier relationships” with its joint-venture partners in China. Tesla, which does not operate with a joint venture, stated that it has mapped its supply chain back to the mining level in several cases but did not provide detailed evidence of freedom from forced labor.
With China being the largest market for vehicle sales, carmakers face challenges due to their market presence and leverage in the country. The report emphasized the necessity for a strategic decision by auto manufacturers in handling this situation.
The significant findings by Human Rights Watch shed light on the critical importance of monitoring and enforcing ethical supply chains in the automotive industry, particularly in areas where forced labor is a concern. This development urges an urgent need for enhanced transparency and accountability across the supply chain of car manufacturers to eliminate any potential ties to human rights abuses in Xinjiang.
