According to RANE expert Marc Ross, Founder at Caracal, the new legislation is broadly stated and presents a 'one-size-fits-all' approach that isn’t aligned with how the market works. Different sectors and different business models require a more sophisticated set of solutions.
As concerns rise globally over the use of forced labor in China’s Xinjiang Uyghur Autonomous Region, businesses with supply chains that extend into China face heightened reputational and compliance risks. Having passed the Senate by a voice vote on 14 July 2021, the “Uyghur Forced Labor Prevention Act,” has raised business concerns as operations brace for its passage in the House.
According to the legislation, goods produced in part or whole from the Xinjiang Uyghur Autonomous Region would be presumed to be made using compulsory labor and ultimately banned from entry into the US.
The legislation asserts that approximately 1.8 million Uyghurs and Muslim minority groups have been detained in a system of extrajudicial internment camps that enforce labor, torture, political indoctrination, and severe human rights abuses.
As businesses prepare for altered production lines and value chain shifts, Caracal's Marc Ross spoke with RANE analysts and joined other experts to break down the situation and explain what businesses should expect going forward.
