US House passes bill to force companies to disclose Xinjiang-sourced materials
- ‘We are not sympathetic to the fact that investors may lose money if in fact we stop slavery,’ says a Democratic congresswoman
- Republicans who oppose the legislation say it would constitute overreach by the US Securities and Exchange Commission
Lawmakers in the US House of Representatives approved legislation on Wednesday that would require publicly listed companies in the US to disclose commercial links to China’s Xinjiang Autonomous Uygur Region amid concerns about the use of forced labour there.
In contrast to numerous recent China bills that have drawn near unanimous support, the bill passed through the Democratic-controlled chamber along largely party lines. Republicans who opposed the legislation said it would constitute overreach by the US Securities and Exchange Commission (SEC).
After failed attempts by Republicans to drastically amend the bill, the Uyghur Forced Labor Disclosure Act passed by a vote of 253 to 163, with 26 Republicans breaking ranks to support it.
If enacted, the bill would compel listed companies to declare in annual reports whether they, or their affiliated entities, imported goods originating in Xinjiang or containing materials sourced there. The companies would also have to declare whether the goods were sourced from “forced labour camps” and, if so, how much revenue those products generated.
The importation of goods produced using forced labour is already illegal in the US, but backers of the bill hope that increased transparency about American entities’ involvement in the region will raise consumer awareness about the issue and force companies to rethink their supply chains.