December 8, 2023

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U.S. Senate committee asks carmakers about Chinese supply chain

U.S. Senate committee asks carmakers about Chinese supply chain

WASHINGTON, Dec 22 (Reuters) – The U.S. Senate Finance Committee has questioned eight key automakers, such as General Motors (GM.N), Tesla (TSLA.O) and Ford Motor (F.N), to disclose no matter if any of their components are connected to alleged pressured labor use in China, according to letters made general public on Thursday.

In June, a U.S. law took influence banning the import of pressured-labor products from Xinjiang, in a pushback versus Beijing’s treatment of China’s Uyghur Muslim minority, which Washington has labeled genocide.

Senate Finance Committee Chair Ron Wyden wrote the main executives of significant automakers inquiring about Chinese supply chain issues, declaring “it is crucial that automakers scrutinize their relationships with all suppliers linked to Xinjiang.”

Beijing denies abuses in Xinjiang, but suggests it had established “vocational teaching centers” to control terrorism, separatism and spiritual radicalism.

The letters, which have been also sent to Toyota Motor (7203.T), Volkswagen (VOWG_p.DE), Chrysler-parent Stellantis (STLA.MI) and Mercedes-Benz , claimed “except thanks diligence confirms that elements are not connected to forced labor, automakers are unable to and need to not offer cars in the United States that involve elements mined or produced in Xinjiang.”

Wyden needs to know no matter whether the automakers have ever canceled or curtailed use of any provider “because of its use of raw elements, mining, processing, or elements production linked to Xinjiang?”

He cited a new report introduced earlier this thirty day period by scientists at Britain’s Sheffield Hallam University on the car industry’s use of metal, aluminum, copper, batteries, electronics and other components made in Xinjiang.

“In between uncooked elements mining/processing and automobile parts manufacturing, we uncovered that practically each component of the auto would demand heightened scrutiny to guarantee that it was cost-free of Uyghur forced labor,” the report explained.

GM explained Thursday it actively displays its world wide provide chain and that its provider contracts forbid the use of any “pressured or involuntary labor, abusive procedure of staff or corrupt organization tactics in the giving of goods and companies to GM.”

Honda reported it expects suppliers to comply with its world sustainability recommendations with regard to labor. Stellantis stated “creating powerful accountable offer chains is an critical target for us” and displays suppliers’ compliance with its code of perform by means of contractual commitments and ongoing evaluations.

Volkswagen said it would answer to the Senate letter and emphasised it will take company duty significantly and rejects “forced labor and all varieties of present day slavery together with human trafficking.”

The other automakers both did not comment or did not right away comment.

The United Car Employees (UAW) union this thirty day period termed on automakers to shift their whole source chain out of China’s Xinjiang area, stating “the time is now for the car business to build substantial-street offer chain types outdoors the Uyghur Region that defend labor and human rights and the natural environment.”

Reporting by David Shepardson enhancing by Jonathan Oatis and Deepa Babington

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