NGO: Automakers Have Weaker Sourcing Standards in China
Human Rights Watch says that "some car manufacturers in China have succumbed to government pressure to apply weaker human rights and responsible sourcing standards at their Chinese joint ventures than in their global operations," and argues that car companies should disengage from all suppliers that source aluminum from Xinjiang, and should map aluminum supply chains back to the bauxite mines, whether for aluminum ingots or semi-fabricated aluminum.
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HRW didn't do its own analysis of the links of Xinjiang aluminum to Uyghur forced labor -- it relied on Sheffield Hallam University, NomoGaia and Horizon Advisory. They said those groups' "research provided credible evidence that aluminum producers in Xinjiang are participating in labor transfers" as recently as 2020. They said there is also evidence that the aluminum smelter "Xinjiang Zhonghe, co-owns a coal mining company, Tianchi Energy, which participated in labor transfers in 2019 and 2023."
HRW, which called its report Asleep at the Wheel, acknowledged that most of China's aluminum production is used by Chinese manufacturers, so carmakers' operations in Europe or North America are unlikely to be importing Uyghur-tainted aluminum directly.
"Chinese companies, however, also manufacture and export aluminum-heavy parts like alloy wheels and the foil, casings, and trays used for electric vehicle batteries," the report said.
HRW asked BYD, General Motors, Tesla, Toyota and Volkswagen to describe their efforts to map their aluminum supply chains. Toyota and BYD didn't respond to HRW; Toyota also didn't respond to International Trade Today .
Volkswagen told HRW it didn't control sourcing at its joint venture in China, but at the rest of its global operations, "it has prioritized supply chain mapping for certain aluminum parts, [but] it still has 'blind spots' over the origin of the aluminum in its cars," according to the report. "The company also said that supply chain mapping for aluminum is a challenge because of the sheer number of aluminum suppliers and the number of intermediaries in the supply chain."
Tesla told HRW "that it had intensified supply chain mapping for aluminum, 'driven in part by global trade regulations to combat forced labor.' Tesla said that it had, 'in several cases', mapped its supply chain back to the mining level and had not found evidence of forced labor. The company did not, however, specify how much of the aluminum in its cars remains of unknown origin and so could be linked to Xinjiang." HRW said Tesla responded with the most detail of the carmakers. Tesla and VW did not respond to requests for comment from ITT.
GM submitted a general statement to HRW, almost identical to the one it sent ITT: "General Motors recognizes the importance of responsible sourcing practices, as outlined in our Supplier Code of Conduct. GM remains committed to conducting due diligence and working collaboratively with industry partners, stakeholders, and organizations to continuously evaluate and address any potential violation in our supply chain."
HRW noted that Xinjiang generally does not process ingots into alloys used in automaking, nor does it produce aluminum sheet or foil, used to make parts or bodies.
"As a result, most of the aluminum produced in the XUAR is transported to other provinces in China as 'unalloyed' ingots, blocks of unprocessed aluminum metal that can later be remelted to make a desired alloy. Once an aluminum ingot has been melted and mixed with other materials, it is impossible to determine whether or how much of it came from Xinjiang, enabling tainted aluminum to enter domestic and global supply chains undetected," the report said.
The NGO made more than 20 specific recommendations on sourcing, documenting, negotiating with suppliers and responding to NGO complaints. They are detailed at the end of the report.