Recommendations & Conclusions
17 items
1
Conclusion
Fifth Report - Uyghur forced labour in …
Acknowledged
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 …
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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 while failing to undertake the necessary and basic due diligence procedures to know for certain that their supply chains are not implicated in slave labour or the abuse of minorities in China
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Government response AI summary
The government acknowledges the committee's findings and expresses thanks, stating its commitment to ensuring UK organizations are not complicit in human rights violations in Xinjiang.
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Department for Business and Trade
2
Conclusion
Fifth Report - Uyghur forced labour in …
Acknowledged
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 …
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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 decision to appoint Sir Brian Leveson to review the company’s supply chain transparency in response to our inquiry. We would encourage other companies to undertake independent inquiries into their due diligence policies.
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Government response AI summary
The government offers a general acknowledgment, thanking the committee and stating its broad commitment to ensuring UK organizations are not complicit in human rights violations in Xinjiang.
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Department for Business and Trade
3
Recommendation
Fifth Report - Uyghur forced labour in …
Not Addressed
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 …
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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 ByteDance (HK) Ltd), which are subject to China’s National Intelligence Law. We invite TikTok to publish independently verified governance and data flow arrangements to confirm full legal separation between TikTok UK and other ByteDance Ltd group companies.
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Government response AI summary
The government thanks the Committee for its recommendations to businesses but does not specifically address the call for TikTok to publish independently verified governance and data flow arrangements, instead offering generic statements.
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Department for Business and Trade
4
Conclusion
Fifth Report - Uyghur forced labour in …
Not Addressed
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 …
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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 Disney Company still has many questions to answer, particularly in relation to concerns about whether it completed adequate risk assessments and put in place sufficient safeguarding measures during the production of Mulan in Xinjiang, and why it refused to answer questions before our Committee. Correspondence continues between the Committee and The Walt Disney Company. (Paragraph 33) UK Government action- the next steps
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Government response AI summary
The government thanks the committee for its report and reiterates its commitment to ensuring UK organisations are not complicit in human rights violations in Xinjiang, but does not specifically address the committee's disappointment regarding The Walt Disney Company.
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Department for Business and Trade
5
Recommendation
Fifth Report - Uyghur forced labour in …
Acknowledged
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 …
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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 shown little sign that it is taking a proactive or meaningful lead on investigating UK business links to forced labour and other human rights abuses in China or elsewhere. The Department must take urgent action in order to eradicate the use of forced labour in UK value chains, as set out below. (Paragraph 41) 24 Uyghur forced labour in Xinjiang and UK value chains Company Directors Disqualification Act 1986
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Government response AI summary
The government thanked the Committee and stated its commitment to ensuring UK organisations are not complicit in human rights violations in Xinjiang, but did not outline specific urgent actions or how the Department will 'do more' as recommended.
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Department for Business and Trade
6
Recommendation
Fifth Report - Uyghur forced labour in …
Rejected
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?
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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?
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Government response AI summary
The government rejected the recommendation to review the Company Directors Disqualification Act, stating they are not convinced of the case to pursue this approach at this time due to proportionality concerns regarding penalties for failing to publish modern slavery statements.
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Department for Business and Trade
7
Recommendation
Fifth Report - Uyghur forced labour in …
Rejected
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 …
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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 in Xinjiang. The working group should coordinate action across Government in relation to the enforcement and strengthening of business compliance with relevant legislation, UN diplomacy, Magnitsky sanctions and human rights declarations.
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Government response AI summary
The government rejects the recommendation for a new Director-led working group, stating that an existing cross-Government working group established in August 2020 already coordinates action on human rights in Xinjiang, including supply chain transparency.
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Department for Business and Trade
8
Recommendation
Fifth Report - Uyghur forced labour in …
Accepted in Part
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, …
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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, and ii) a blacklist of firms that have failed to provide evidence that they do not have supply chain links to Xinjiang or refuse to answer questions about possible links. These lists should also include companies that secure contracts from the UK Government, and an updated version should be published every six months. Companies that are operating in Xinjiang must prove that they are not in breach of the Modern Slavery Act 2015.
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Government response AI summary
The government will not create the requested public whitelist/blacklist but announced that the FCDO will provide guidance to UK government bodies to exclude suppliers with sufficient evidence of human rights abuses in their supply chains on a case-by-case basis. They also highlighted existing guidance for …
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Department for Business and Trade
9
Conclusion
Fifth Report - Uyghur forced labour in …
Accepted
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 …
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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 excused from doing basic due diligence to guarantee that their supply chains are fully transparent and free from forced labour and slavery.
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Government response AI summary
The government defends the pioneering nature of the Modern Slavery Act but acknowledges the need for improvement, stating it committed to strengthening the legislation in September 2020. It reiterates its expectation for businesses to be vigilant and conduct due diligence.
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Department for Business and Trade
10
Conclusion
Fifth Report - Uyghur forced labour in …
Accepted
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.
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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.
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Government response AI summary
The government notes this conclusion and details actions taken or planned to address corporate governance and audit regulations, including working with the Home Office on Modern Slavery Act enforcement, publishing a White Paper consultation on audit, and planning to legislate on corporate transparency.
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Department for Business and Trade
11
Recommendation
Fifth Report - Uyghur forced labour in …
Accepted in Part
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 …
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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 companies.
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Government response AI summary
The government partially accepts the recommendation, committing to strengthen the Modern Slavery Act 2015 by extending reporting requirements to public bodies, enhancing transparency through a new digital service, and introducing financial penalties, to be legislated as parliamentary time allows.
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Department for Business and Trade
12
Recommendation
Fifth Report - Uyghur forced labour in …
Not Addressed
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 …
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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 labour in Xinjiang and UK value chains 25 implementation of these proposals as a matter of priority. These proposals should include a commitment to creating a publicly accessible digital depository on the Government’s website containing annual modern slavery statements. (Paragraph 60) Magnitsky sanctions and international cooperation
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Government response AI summary
The government states that BEIS has worked with the Home Office to support the development and strengthening of modern slavery statement provisions, but provides no specific commitment or plan for the committee's recommendations.
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Department for Business and Trade
13
Conclusion
Fifth Report - Uyghur forced labour in …
Not Addressed
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 …
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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 also disappointed that the BEIS Department has failed to take a lead on determining the efficacy of sanctions against perpetrators of human rights abuses in Xinjiang.
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Government response AI summary
The government's response discusses the development and enforcement of modern slavery statements, which does not address the committee's disappointment regarding Magnitsky sanctions on Chinese officials.
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Department for Business and Trade
14
Recommendation
Fifth Report - Uyghur forced labour in …
Accepted
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
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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
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Government response AI summary
The government states that it has already imposed asset freezes and travel bans against those responsible for human rights violations in Xinjiang on March 22, and announced a review into export controls on January 12.
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Department for Business and Trade
15
Conclusion
Fifth Report - Uyghur forced labour in …
Accepted
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 …
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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 effective oversight of the use of BEIS funding in China.
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Government response AI summary
The government agrees transparency is important for ODA funding in China and states its commitment to improving data management. It highlights existing measures, including a 'Good' transparency score, new data systems, and a recent ICAI audit finding its approach robust, which it argues ensures effective …
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Department for Business and Trade
16
Recommendation
Fifth Report - Uyghur forced labour in …
Accepted
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 …
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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 its direct expenditure, including those via other UK Government departments - in particular the DIT and FCDO - or public bodies in China, to ensure it is compliant with the principles expressed in this report.
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Government response AI summary
The government agrees on the importance of transparency for ODA funding in China and states it is committed to improving data management. It highlights existing robust measures, including anti-slavery provisions in allocation letters and a recent ICAI audit finding its approach robust, which address the …
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Department for Business and Trade
17
Recommendation
Fifth Report - Uyghur forced labour in …
Accepted
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 …
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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 UK value chains
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Government response AI summary
The government agreed on the need for greater transparency and is introducing a new digital data submission tool for Newton Fund partner organisations to report detailed expenditure, individual grants, and awards, which will help address the request for a list of organisations and sums of …
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Department for Business and Trade