NEW: Xinjiang's exports to the EU soared by 131% in the first half of 2021, led by surges in some goods that have been flagged as being linked to forced labour by the United States
The EU currently has no ban on such goods but is processing supply chain legislation that would seek to remove goods linked to forced labour from the market.
Shipments came off a low base due to Covid shutdowns last year, but are up 103.5% on 2019's levels
Germany bought 143% more goods from Xinjiang in the first six months vs a year earlier, exports to Italy rose 32% and the Netherlands 187%, and Belgium 1,591%
Post Brexit UK bought 192.2% more goods from Xinjiang in the first half of 2021
In total, the EU imported US$373.2 million worth of Xinjiang-made goods between January and June, more than triple the value of such goods shipped to the United States
Huge increase in shipments of tomato products to Italy, these have been flagged in a recent US government advisory as being inextricably linked to forced labour. Materials for synthetic fabrics also rose enormously to Germany, Italy, Spain.
By far the biggest EU export to Xinjiang was chemical wood pulp. As we reported in March, this is also has murky links to forced labour. Finland's exports of this to Xinjiang was 10 times larger than any other export
The day after this report, Finnish company Stora Enso said it would exit the market, but we can see that they are exporting more wood pulp to Xinjiang than ever before. A spokesperson tells us they will divest by the end of the year...
While the world wakes up to the textiles industry's hazardous position on Xinjiang cotton, our investigation reveals a whole new thread that could further upend the industry: viscose rayon.
Viscose is the world's third most commonly used fabric - and up to 18% of it is made in Xinjiang, where it is often mixed with cotton and then fans out around the world, barely traceable in the global supply chain
Our analysis of customs records, satellite imagery, govt documents and interviews with sources on the ground in Xinjiang uncover deep links between the region's biggest producer - Zhongtai Chemical - and XPCC, the sanctioned, quasi-military entity that runs parts of Xinjiang
China sanctions 10 EU individuals and four entities in response to EU sanctions over Xinjiang
MEPs: Reinhard Butikofer, Michael Gahler, Raphaël Glucksmann, Ilhan Kyuchyuk, Miriam Lexmann, Sjoerd Wiemer Sjoerdsma of the Dutch Parliament, Samuel Cogolati of the Belgian Federal Parliament, Dovile Sakaliene of the Seimas of the Republic of Lithuania,
German scholar Adrian Zenz, Swedish scholar Björn Jerdén, Political and Security Committee of the Council of the EU, Subcommittee on Human Rights of the EU Parliament, the Mercator Institute for China Studies (!) in Germany, and the Alliance of Democracies Foundation in Denmark
Four officials targeted are Zhu Hailun, ex-Sec of Xinjiang Political & Legal Affairs Committee, Wang Junzhung, Party Sec of Xinjiang Production and Construction Corps, Wang Mingshan, member of XUAR Standing Committee, Chen Mingguo, Director, Xinjiang Public Security Bureau
Notable by absence is Chen Quanguo, the CCP chief in Xinjiang who is seen as the mastermind of the network of internment camps, and who is a member of the Politburo standing committee.
In Dec 19, he became the most senior Chinese official sanctioned by the United States
Wang Yiwei Renmin hoped that the sanctions might provide “necessary balance” for Brussels in gaining approval for its deal with Beijing.
But European Parliamentarians have other ideas...
"What we would need to ratify the CAI, apart from the CCP commitment to ratify ILO standards, are concrete measures such as a European supply chain law and an EU-wide ban on imports of products from forced labour," said @EnginEroglu_FW
Xi Jinping's surprise msg on CPTPP has sent a ripple of intrigue around the Pacific Rim and put more pressure on Joe Biden re the future of the trade deal. Long read from me with @kinlinglo
Chinese ex officials and scholars say Xi's statement effectively makes it official policy, but there is no way China makes the terms of CPTPP on SOEs, competition, digital, data without serious reform
Is that sort of reform likely? Well per @scmpeconomy, Xi plans to make them "stronger, better and bigger", so, eh, probably not...
China's mind-blowing shift to mask-making, while the rest of the world scrambles for medical supplies, serves as a fresh reminder of the planet's reliance on China-made goods, for better or worse.
As of Feb 29, China was making 116mn masks a day, up from 20mn pre #covid19. Everyone from the co making j20 fighter jets to Sinopec to Foxconn getting in on the act, in a startling mobilisation of the state-run economy
As France and Germany refused to export masks to Italy, China stepped in.
This is a PR coup for Beijing, a soft power move that should be a concern to Western powers who have lost their industrial capacity at this tough time, analysts say.