Fifth Report - Uyghur forced labour in Xinjiang and UK value chains
Select Committee
Business and Trade Committee
HC 1272
17 March 2021
Government response
Third Special Report - Uyghur forced labour in Xinjiang and UK value chains: Government Response to the Committee’s Fifth Report of Session 2019–21 · published 10 Jun 2021
Recommendations & Conclusions
17 results
1
Conclusion
Acknowledged
Para 24
Given that evidence of serious human rights abuses in Xinjiang has been widely reported over...
Conclusion
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 …
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Government Response 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.
Department for Business and Trade
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2
Conclusion
Acknowledged
Para 25
It is clearly unacceptable that Boohoo was found to have only minimal data about the...
Conclusion
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 …
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Government Response 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.
Department for Business and Trade
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3
Recommendation
Not Addressed
Para 31
We welcome TikTok’s offer to review its algorithm, and we will visit their offices to...
Recommendation
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 …
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Government Response 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.
Department for Business and Trade
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4
Conclusion
Not Addressed
We are deeply disappointed that The Walt Disney Company declined our invitation to give oral...
Conclusion
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 …
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Government Response 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.
Department for Business and Trade
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5
Recommendation
Acknowledged
We believe the Department must do more to meet its commitments to uphold human rights,...
Recommendation
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 …
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Government Response 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.
Department for Business and Trade
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6
Recommendation
Rejected
We recommend that the Department reviews the Company Directors Disqualification Act (1986) to determine whether...
Recommendation
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. …
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Government Response 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.
Department for Business and Trade
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7
Recommendation
Rejected
Para 45
The Government cannot stand idly by while some companies keep operating with wilful blindness.
Recommendation
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 …
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Government Response 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.
Department for Business and Trade
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8
Recommendation
Accepted in Part
Para 46
In addition, we call on the Government to report to the Committee on the feasibility...
Recommendation
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 …
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Government Response 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 businesses and a new government-run registry for modern slavery statements.
Department for Business and Trade
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9
Conclusion
Accepted
Para 57
The Transparency in Supply Chains legislation in the Modern Slavery Act was important when it...
Conclusion
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 …
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Government Response 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.
Department for Business and Trade
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10
Conclusion
Accepted
Para 58
The Department’s commitment to working with other ministries to strengthen the Modern Slavery Act and...
Conclusion
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 …
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Government Response 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.
Department for Business and Trade
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11
Recommendation
Accepted in Part
Para 59
We are disappointed by the Government’s refusal to commit to a clear timetable for making...
Recommendation
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 …
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Government Response 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.
Department for Business and Trade
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12
Recommendation
Not Addressed
We further recommend that the Government a) accelerate its plans to extend the reporting requirement...
Recommendation
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 …
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Government Response 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.
Department for Business and Trade
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13
Conclusion
Not Addressed
Para 67
We are disappointed that Magnitsky sanctions have not yet been imposed on Chinese officials implicated...
Conclusion
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 …
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Government Response 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.
Department for Business and Trade
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14
Recommendation
Accepted
We recommend that the Department, in collaboration with the FCDO and DIT, fully assess the...
Recommendation
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 …
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Government Response 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.
Department for Business and Trade
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15
Conclusion
Accepted
Para 73
We were disappointed that the information provided by the Minister about the deployment of BEIS...
Conclusion
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 …
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Government Response 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 oversight.
Department for Business and Trade
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16
Recommendation
Accepted
Para 74
We recommend that the Department commit to full transparency in terms of its ODA funding...
Recommendation
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 …
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Government Response 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 recommendation.
Department for Business and Trade
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17
Recommendation
Accepted
The Department should also publish a comprehensive supply chain review of Newton Fund-supported projects in...
Recommendation
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 …
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Government Response 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 money.
Department for Business and Trade
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