August 10, 2021
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The Bottom Line Up Front

Long Shadows uncovers how companies perpetrating forced labor and human rights abuses in Xinjiang are enmeshed in global trade and finance despite severe multilateral sanctions designed to cut them off from international markets.

Executive Summary

Companies perpetrating forced labor and human rights abuses in the Xinjiang Uyghur Autonomous Region (Xinjiang) are enmeshed in global trade and finance despite severe multilateral sanctions designed to cut them off from international markets. This is a result of their integration with the corporate, trade, and financial landscape within Xinjiang, China, and the greater region. This report uses the Xinjiang Production and Construction Corps (XPCC)—a regional governing body with a vast commercial network—as a test case to better understand how perpetrators of human rights abuse in Xinjiang retain access to international markets. Analysis of publicly available information reveals that sanctions and international outrage have been insufficient in preventing the XPCC from accessing global markets, allowing it to continue profiting from forced labor and other forms of oppression.

Xinjiang Production and Construction Corps (XPCC) Subsidiary Network

Foreign Investors Invested in Trade Benefcial Owner of Domestic Chinese Investors Domestic Chinese Companies Domestic Chinese Companies Regional Foreign Companies Global Brands and Companies Foreign Subsidiaries XPCC Xinjiang Production and Construction Corps Publicly Listed Subsidiaries Over 2900 XPCC Subsidiaries

Though the XPCC is sanctioned by both the United States and the European Union, C4ADS found that the XPCC has continued to engage in economic activity through the following mechanisms:

Trade: The XPCC engages in domestic and regional trade, which, in turn, feeds into global supply chains. This trade, which often flows through Central Asia and Russia, involves products deemed by the US government to be high risk for forced labor, such as cotton and tomato products. C4ADS identified numerous US and global retailers and intermediary suppliers, including well-known brands, that may be using XPCC products. 

Foreign Subsidiaries: The XPCC is connected to regional development and economic activity through its foreign subsidiaries. In particular, these subsidiaries are often contracted by regional governments and the Asian Development Bank to carry out development-related activities in Central Asia.

Financial Markets: Through its publicly traded subsidiaries, the XPCC is integrated with and supported by Chinese financial markets. Foreign investors, including major US and Western banks and financial institutions, are invested in XPCC companies through these markets.

The XPCC’s continued engagement with the international economy demonstrates that challenge that stakeholders face in removing companies implicated in human rights abuse from global supply chains.  

Map of XPCC Engagement with the Global Economy

Click to explore the XCPP’s engagement with the global economy through trade and foreign subsidiaries

Click to explore the XCPP’s engagement with the global economy through trade and foreign subsidiaries

As discussed in the recommendations section of this report, sharing data about perpetrating actors in and outside of Xinjiang is vital for the private and public sector to effectively act. To support businesses, government actors, civil society, and journalists, C4ADS is publishing the Majority-Owned XPCC Companies List used in this report – the C4ADS-generated list of companies majority-owned by the XPCC or its subsidiaries.

Explore and download the data here:

Majority-Owned XPCC Companies List

https://d3gnblvlnseq6o.cloudfront.net/

https://d3gnblvlnseq6o.cloudfront.net/

The data displayed on this page is derived from publicly available information. It may not reflect the most up to date or comprehensive record of events.

We do not intend to suggest or imply that any people, companies or other entities included or referenced on this page have violated any applicable law or regulation, or that they have otherwise acted improperly.

We do not warrant the information contained on this page for veracity or for any purpose. Many people and entities have the same or similar names. We suggest you take additional steps to verify the identities of any individuals or entities referenced on this page. If you find an error in the database or have any other questions, please email us at [email protected].