U.S. House lawmakers are requesting information from Nike Inc., Adidas AG and at least two other companies on whether they are importing products derived from forced labor in China.
(Bloomberg) — U.S. House lawmakers are requesting information from Nike Inc., Adidas AG and at least two other companies on whether they are importing products derived from forced labor in China.
Republican Representative Mike Gallagher, chair of the House Select Committee on the Chinese Communist Party, and the panel’s top Democrat, Raja Krishnamoorthi, sent letters to the companies Tuesday. They also wrote to the Chinese-owned shopping platforms Shein and Temu.
The US has accused China of requiring Uyghurs in the country’s Xinjiang region to work against their will, part of a broader government campaign of genocide.
In response, Congress passed the Uyghur Forced Labor Prevention Act in 2021, increasing sanctions and trade restrictions. The law bans goods from Xinjiang from being imported into the US, with the presumption that it is a product of forced labor. China has been accused of widespread human rights abuses against the largely Muslim Uyghurs. China has repeatedly rejected allegations of human rights abuses and genocide.
In their letter, the US lawmakers say they are seeking to determine whether the companies are compliant with the legislation. They asked the companies a range of questions, including where materials for products are sourced and what steps the companies have taken to examine their supply chains since the law was passed.
Gallagher, from Wisconsin, and Krishnamoorthi of Illinois wrote in the letter that during a March hearing, experts alleged that both Nike and Adidas were sourcing garments made from material from Xinjiang.
“Continuing to import goods produced in part with the forced labor of Uyghurs potentially violates the UFLPA and creates the conditions in which the CCP is able to continue committing genocide,” the lawmakers wrote.
Adidas didn’t immediately comment early Wednesday. It’s shares declined as much as 0.7% in early German trading.
Nike didn’t immediately respond to a request for comment late Tuesday night.
In a statement, Shein said it has no suppliers in the Xinjiang region and has “zero tolerance” for forced labor.
“We take visibility across our entire supply chain seriously, and we are committed to respecting human rights and adhering to local laws in each market we operate in,” the company said. “Our suppliers must adhere to a strict code of conduct.”
(Updates with Adidas shares in eighth paragraph)
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