U.S. investigation finds forced labor issues in Chinese parts imported to cars

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Based on reports from Reuters and Agence France-Presse, a report released by the U.S. Senate Finance Committee on Monday stated that BMW parts "may be manufactured through forced labor" and that Jaguar Land Rover parts also have the same problem. In addition, Volkswagen also uses such parts to produce vehicles for the U.S. market and has "ongoing business ties" with manufacturing in China's Xinjiang region.

The U.S. Congress passed the Uyghur Forced Labor Prevention Act (UFLPA) in 2021 to strengthen enforcement and prevent the import of goods believed to be produced by the Uyghur minority under forced labor from China's Xinjiang region. The Chinese government has denied allegations of forced labor.

Democratic Senator Ron Wyden, chairman of the U.S. Senate Finance Committee, said: "Self-regulation by automakers is clearly not working." He urged Customs and Border Protection (CBP) to "take a series of concrete measures to increase... Intensify enforcement efforts against companies that facilitate the shameful use of forced labor in China."

U.S. Customs and Border Protection had no immediate comment.

The latest Senate report reportedly investigated parts from Sichuan Jingweida Technology Group Co., Ltd. (JWD). The company was placed on the list of prohibited entities under the Uyghur Labor Prevention Act in 2023 for engaging in business practices believed to target members of persecuted groups such as Uyghurs in Xinjiang .

Relevant investigations found that BMW’s suppliers purchased relevant parts from Matrix and used them in vehicles destined for the U.S. market. The company revealed after being questioned by the Financial Commission that at least 8,000 Mini Cooper cars equipped with such parts were shipped to the United States. The report pointed out that BMW continued to import related parts produced by Jingweida until at least April this year.

The report also found that Bourns Inc., a California-based automotive supplier, also purchased parts from Sichuan Jingweida Technology Group (JWD) and provided them to Lear, a direct supplier to BMW and Jaguar Land Rover. Corp) . Bourne notified Lear in January that LAN transformer electronic components produced by Sichuan Jingweida Technology Group were banned from use in vehicles imported into the United States.

The report states that on January 11, Lear sent letters to BMW, Jaguar Land Rover, Volvo and Volkswagen to inform them of the banned parts. Jaguar Land Rover imported spare parts containing Sichuan Jingwei Da Technology Group components after December 2023, but then sealed all existing stocks containing the components worldwide for destruction. BMW "appears to have stopped (importing) only after the Commission repeatedly asked Lear's customers (including BMW) detailed questions about their relationship with Sichuan Jingwei Da Technology Group."

In February, Volkswagen confirmed that thousands of Porsche, Bentley and Audi vehicles were being held at U.S. ports because of Chinese parts that violated forced labor laws.

The report also states that Volvo Cars received transformers from Sichuan Jingweida Technology Group for a new car project that has not yet entered production, but did not use them in its vehicles.