Select Committee · Business and Trade Committee

Forced labour in UK value chains

Status: Closed Opened: 18 Sep 2020 Closed: 27 Sep 2021 7 recommendations 10 conclusions 1 report

The BEIS Committee is holding an inquiry which will explore the extent to which business in the UK are exploiting the forced labour of Uyghurs in the Xinjiang region of China. The Committee will investigate the risks that UK based businesses face when engaging supply chains that originate in China and what more the Government …

Reports

1 report
Title HC No. Published Items Response
Fifth Report - Uyghur forced labour in Xinjiang and UK valu… HC 1272 17 Mar 2021 17 Responded

Recommendations & Conclusions

17 items
1 Conclusion Fifth Report - Uyghur forced labour in …

Given that evidence of serious human rights abuses in Xinjiang has been widely reported over...

Given that evidence of serious human rights abuses in Xinjiang has been widely reported over many years, we are appalled that companies still cannot guarantee that their supply chains are free from forced labour. We found that many companies asserted that they have robust procedures for prohibiting human rights abuses …

Government response. The Government would like to thank the Committee for setting out its recommendations to businesses (recommendations 1–5). The Government would also like to thank the businesses that that provided written and oral evidence to support the Committee’s report. It has …
Department for Business and Trade
2 Conclusion Fifth Report - Uyghur forced labour in …

It is clearly unacceptable that Boohoo was found to have only minimal data about the...

It is clearly unacceptable that Boohoo was found to have only minimal data about the different tiers in their supply chain, resulting in labour abuses in the UK. Boohoo and other companies need to accurately audit their supply chains both in the UK and around the world. We welcome Boohoo’s …

Government response. The Government would like to thank the Committee for setting out its recommendations to businesses (recommendations 1–5). The Government would also like to thank the businesses that that provided written and oral evidence to support the Committee’s report. It has …
Department for Business and Trade
3 Conclusion Fifth Report - Uyghur forced labour in …

We welcome TikTok’s offer to review its algorithm, and we will visit their offices to...

We welcome TikTok’s offer to review its algorithm, and we will visit their offices to do so with an expert team as soon as is possible. Meanwhile, we remain deeply concerned about the flow of information between TikTok UK, its parent company ByteDance Ltd and other subsidiary companies (such as …

Government response. The Government would like to thank the Committee for setting out its recommendations to businesses (recommendations 1–5). The Government would also like to thank the businesses that that provided written and oral evidence to support the Committee’s report. It has …
Department for Business and Trade
4 Conclusion Fifth Report - Uyghur forced labour in …

We are deeply disappointed that The Walt Disney Company declined our invitation to give oral...

We are deeply disappointed that The Walt Disney Company declined our invitation to give oral evidence, and to engage meaningfully with our inquiry. The Walt Disney Company has a responsibility to demonstrate that none of their actions supported oppression or undermined human rights during the production of Mulan. The Walt …

Government response. The Government would like to thank the Committee for setting out its recommendations to businesses (recommendations 1–5). The Government would also like to thank the businesses that that provided written and oral evidence to support the Committee’s report. It has …
Department for Business and Trade
5 Conclusion Fifth Report - Uyghur forced labour in …

We believe the Department must do more to meet its commitments to uphold human rights,...

We believe the Department must do more to meet its commitments to uphold human rights, particularly in relation to businesses with links to China. While transparency of supply chain legislation falls under the remit of the Home Office, business transactions are a BEIS responsibility. Despite mounting evidence, the Department has …

Government response. The Government would like to thank the Committee for setting out its recommendations to businesses (recommendations 1–5). The Government would also like to thank the businesses that that provided written and oral evidence to support the Committee’s report. It has …
Department for Business and Trade
6 Recommendation Fifth Report - Uyghur forced labour in …

We recommend that the Department reviews the Company Directors Disqualification Act (1986) to determine whether...

We recommend that the Department reviews the Company Directors Disqualification Act (1986) to determine whether breaches of the Modern Slavery Act 2015 obligations on companies and directors should be the basis for future disqualification for company registration or director duties. (Paragraph 43) A new BEIS policy framework?

Government response. The Department for Business, Energy and Industrial Strategy has worked with the Home Office to support the further development of the section 54 (Transparency in Supply Chains) provisions in the Modern Slavery Act 2015. This includes strengthening the monitoring and …
Department for Business and Trade
7 Recommendation Fifth Report - Uyghur forced labour in …

The Government cannot stand idly by while some companies keep operating with wilful blindness.

The Government cannot stand idly by while some companies keep operating with wilful blindness. We recommend the creation of a Director-led working group within the Department to tackle the ongoing lack of transparency in supply chains specifically linked to the use of forced labour of, but not limited to, Uyghurs …

Government response. The Government is committed to supporting businesses to tackle and prevent modern slavery risks in their supply chains. The Government encourages companies to follow the blueprint laid out in the UN Guiding Principles on Business and Human Rights on how …
Department for Business and Trade
8 Recommendation Fifth Report - Uyghur forced labour in …

In addition, we call on the Government to report to the Committee on the feasibility...

In addition, we call on the Government to report to the Committee on the feasibility and legal basis of further measures in respect of supply chains linked to Xinjiang, including i) a whitelist of companies that have taken significant and clearly evidenced actions regarding their supply chain links to Xinjiang, …

Government response. It is important for businesses to adhere to the UN Guiding Principles when considering their approach to modern slavery. Businesses should take heed of the updated Overseas Business Risk (OBR) guidance1 on Xinjiang to understand the human rights risks associated …
Department for Business and Trade
9 Conclusion Fifth Report - Uyghur forced labour in …

The Transparency in Supply Chains legislation in the Modern Slavery Act was important when it...

The Transparency in Supply Chains legislation in the Modern Slavery Act was important when it was first introduced, but it has not kept pace with changes in business supply chains. The Modern Slavery Act is out of date, has no teeth, and we do not accept that businesses should be …

Government response. The Transparency in Supply Chains legislation in the Modern Slavery Act 2015 established the UK as the first country in the world to require businesses to report annually on their work to prevent and address risks of modern slavery in …
Department for Business and Trade
10 Conclusion Fifth Report - Uyghur forced labour in …

The Department’s commitment to working with other ministries to strengthen the Modern Slavery Act and...

The Department’s commitment to working with other ministries to strengthen the Modern Slavery Act and Transparency in Supply Chain legislation is welcome. However, there is little evidence that BEIS-specific issues around corporate governance and audit regulations are being given sufficient prominence in these cross-departmental discussions in Government.

Government response. The Government notes this conclusion. BEIS has worked with the Home Office to support the further development of the Section 54 (Transparency in Supply Chains provisions) in the Modern Slavery Act 2015, including its monitoring and enforcement. In 2019, the …
Department for Business and Trade
11 Recommendation Fifth Report - Uyghur forced labour in …

We are disappointed by the Government’s refusal to commit to a clear timetable for making...

We are disappointed by the Government’s refusal to commit to a clear timetable for making changes to the Modern Slavery Act. We recommend that the Government strengthen the supply chain transparency obligations for companies and introduce tough fines for non-compliance in line with other price/ earnings to growth responsibilities for …

Government response. The Government partially accepts these recommendations and is taking forward action to strengthen the Modern Slavery Act 2015 and reporting obligations. To improve the quality and detail of reporting and accelerate action to prevent modern slavery, in September 2020 the …
Department for Business and Trade
12 Recommendation Fifth Report - Uyghur forced labour in …

We further recommend that the Government a) accelerate its plans to extend the reporting requirement...

We further recommend that the Government a) accelerate its plans to extend the reporting requirement to public bodies, b) enhance the transparency and accessibility of modern slavery statements, and c) develop options for civil penalties for non-compliance. We ask the Government to bring forward concrete plans for the Uyghur forced …

Government response. 13. The Department for Business, Energy and Industrial Strategy has worked with the Home Office to support the further development of the section 54 (Transparency in Supply Chains) provisions in the Modern Slavery Act 2015. This includes strengthening the monitoring …
Department for Business and Trade
13 Conclusion Fifth Report - Uyghur forced labour in …

We are disappointed that Magnitsky sanctions have not yet been imposed on Chinese officials implicated...

We are disappointed that Magnitsky sanctions have not yet been imposed on Chinese officials implicated in human rights abuses in Xinjiang. Given that the US Government has imposed such targeted sanctions, we do not accept the argument that the UK Government has insufficient evidence to impose new sanctions. We are …

Government response. 13. The Department for Business, Energy and Industrial Strategy has worked with the Home Office to support the further development of the section 54 (Transparency in Supply Chains) provisions in the Modern Slavery Act 2015. This includes strengthening the monitoring …
Department for Business and Trade
14 Recommendation Fifth Report - Uyghur forced labour in …

We recommend that the Department, in collaboration with the FCDO and DIT, fully assess the...

We recommend that the Department, in collaboration with the FCDO and DIT, fully assess the options for introducing targeted sanctions against Chinese and international businesses implicated in human rights abuses and the exploitation of Uyghurs in Xinjiang. (Paragraph 68) BEIS Official Development Assistance spending in China

Government response. Having evaluated the evidence, on 22 March, under the UK’s Global Human Rights sanctions regime, the UK imposed asset freezes and travel bans against those responsible for gross human rights violations in Xinjiang. These measures were taken alongside the US, …
Department for Business and Trade
15 Conclusion Fifth Report - Uyghur forced labour in …

We were disappointed that the information provided by the Minister about the deployment of BEIS...

We were disappointed that the information provided by the Minister about the deployment of BEIS Department ODA funding in China only gave a high-level overview of the various research and training programmes taking place in China under the umbrella of BEIS ODA. This is important because it does not guarantee …

Government response. We agree that transparency of BEIS’s ODA funding in China is of particular importance. BEIS is committed to improving the data management and transparency of its ODA funds. In the most recent Publish What You Fund assessment, BEIS achieved a …
Department for Business and Trade
16 Recommendation Fifth Report - Uyghur forced labour in …

We recommend that the Department commit to full transparency in terms of its ODA funding...

We recommend that the Department commit to full transparency in terms of its ODA funding being used in China to ensure that no Government funds are being used to underpin human rights abuses. The use of taxpayer funds needs to be addressed. The Department should conduct an urgent review of …

Government response. We agree that transparency of BEIS’s ODA funding in China is of particular importance. BEIS is committed to improving the data management and transparency of its ODA funds. In the most recent Publish What You Fund assessment, BEIS achieved a …
Department for Business and Trade
17 Conclusion Fifth Report - Uyghur forced labour in …

The Department should also publish a comprehensive supply chain review of Newton Fund-supported projects in...

The Department should also publish a comprehensive supply chain review of Newton Fund-supported projects in China and provide the Committee with a full list of the organisations it works with in administering the Newton Fund and the sums of money involved. (Paragraph 75) 26 Uyghur forced labour in Xinjiang and …

Government response. The Department agrees that there is a need for greater transparency in the use of BEIS Newton funds in China and elsewhere. To support this, BEIS is introducing a new digital data submission tool for Newton Fund partner organisations to …
Department for Business and Trade

Oral evidence sessions

1 session
Date Witnesses
5 Nov 2020 Andrew Reaney · boohoo group, David Sävman · H&M Group, Elizabeth Kanter · TikTok, Hendrik Alpen · H&M Group, Jaycee Pribulsky · Nike, Maajid Nawaz · Quilliam International, Michael Warren · Department for Business, Energy and Industrial Strategy, Paul Scully MP · Department for Business, Energy and Industrial Strategy, Sean Cady · VF Corporation View ↗

Correspondence

22 letters
DateDirectionTitle
8 Jul 2021 To cttee Letter from the Minister for Small Business, Consumers and Labour Markets relat…
14 Jun 2021 To cttee Letter from the Chair and Nusrat Ghani MP to TikTok relating to their invitatio…
10 Jun 2021 To cttee Letter from the Chair and Nusrat Ghani MP to the Minister on the Government's r…
27 Apr 2021 To cttee Letter from The Walt Disney Company to the Chair and Nusrat Ghani MP in respons…
27 Apr 2021 To cttee Letter from the Chair and Nusrat Ghani MP to The Walt Disney Company regarding…
27 Apr 2021 To cttee Letter from the Corporate Justice Coalition regarding the Committee’s report on…
11 Dec 2020 To cttee Letter from the Chair and Nusrat Ghani MP to Hikvision regarding the Forced lab…
16 Oct 2020 To cttee Letter from the Chair and Nusrat Ghani MP to Victoria’s Secret regarding the fo…
16 Oct 2020 To cttee Letter from the Chair and Nusrat Ghani MP to Zara (Inditex), regarding the forc…
16 Oct 2020 To cttee Letter from the Chair and Nusrat Ghani MP to Adidas regarding the forced labour…
16 Oct 2020 To cttee Letter from the Chair and Nusrat Ghani MP to Amazon regarding the forced labour…
16 Oct 2020 To cttee Letter from the Chair and Nusrat Ghani MP to BooHoo Group regarding the forced …
16 Oct 2020 To cttee Letter from the Chair and Nusrat Ghani MP to Gap (Gap Inc.) regarding the force…
16 Oct 2020 To cttee Letter from the Chair and Nusrat Ghani MP to H&M Group regarding the forced lab…
16 Oct 2020 To cttee Letter from the Chair and Nusrat Ghani MP to TikTok (ByteDance) regarding the f…
16 Oct 2020 To cttee Letter from the Chair and Nusrat Ghani MP to Marks and Spencer regarding the fo…
16 Oct 2020 To cttee Letter from the Chair and Nusrat Ghani MP to Nike regarding the forced labour i…
16 Oct 2020 To cttee Letter from the Chair and Nusrat Ghani MP to Puma regarding the forced labour i…
16 Oct 2020 To cttee Letter from the Chair and Nusrat Ghani MP to Stella McCartney regarding the for…
16 Oct 2020 To cttee Letter from the Chair and Nusrat Ghani MP to The North Face (VF Corporation) re…