Multinational Corporations Lobby Against Bill Prohibiting Import of Goods Made in Forced-Labor Camps in China

Strategic Insights -

Multinational corporations, including Nike and Coca-Cola, are lobbying against a House bill that would ban the import of goods made in forced-labor camps in China. Introduced by Rep. James McGovern in September, the Uyghur Forced Labor Prevention Act has passed the House of Representatives with a 406-to-3 vote. The bill would bar the entry of goods produced in China's Xinjiang region that were "manufactured by convict labor, forced labor, or indentured labor under penal sanctions." However, companies like Apple, Nike, and Coca-Cola are pressing lawmakers to water down the bill, arguing that it would be too complicated to comply with.

Key Takeaways:

  • The Uyghur Forced Labor Prevention Act has passed the House of Representatives with a 406-to-3 vote, aiming to prohibit the import of goods made in forced-labor camps in China.
  • Companies like Apple, Nike, and Coca-Cola are lobbying against the bill, requesting changes to deadlines for compliance, release of supply-chain information to congressional committees, and designation of Chinese entities suspected of human rights violations.
  • The US Chamber of Commerce has stated that the legislation is "well-intentioned" but "misses the mark," suggesting that companies may shift their work elsewhere rather than address human rights issues.
  • A report by the New York Times found that Nike and Coca-Cola have combined spent an estimated $5.6 million on lobbying efforts in Congress and other federal agencies, with Nike specifically targeting the Uyghur Act.
  • A lawyer at Miller & Chevalier, Richard A. Mojica, stated that rebutting a presumption of forced labor can be a challenging endeavor, potentially taking months for a company to show no involvement in forced labor.
  • Congressional staffers and lobbying records compiled by the Times reveal that companies are pressing law makers to water down the bill.

Statistics:

  • 406: The number of votes in favor of the Uyghur Forced Labor Prevention Act in the House of Representatives.
  • 3: The number of votes against the Uyghur Forced Labor Prevention Act in the House of Representatives.
  • $5.6 million: The estimated amount spent by Nike and Coca-Cola on lobbying efforts in Congress and other federal agencies.
  • 9 months: The estimated time frame for a company to show no involvement in forced labor, according to Richard A. Mojica.

Sources:

  • New York Times: "Nike, Coca-Cola and Apple Are Lobbying Against a Bill That Would Prohibit Goods Made in Xinjiang, Report Finds."
  • Congress.gov: House Bill 6210 - Uyghur Forced Labor Prevention Act.
  • IB Times: "Xinjiang camps: US blocks some goods from China over slave labor concerns."
  • US Chamber of Commerce: Letter to Congress on HR 6210 - The Uyghur Forced Labor Prevention Act and HR 6270.