Report published by Atlantic Council details lending as recently as 2020 to 4 Chinese companies who "directly participated in":
• state-sponsored forced labor programs,
• compulsory land expropriation,
• programs that require minoritized citizens to take oaths to the CCP
The World Bank's International Finance Corporation is one development finance institute with links to Xinjiang.
Others include Asian Development Bank, European Investment Bank, European Bank for Reconstruction and Development, Dutch and German state-owned DFIs
European lawmakers including @bueti, @MiriamMLex, @barrymward among the @ipacglobal members to have signed a letter to World Bank chief David Malpass today to call for full World Bank withdrawal from Xinjiang
One example: In 2019, the IFC lent US$40 million to Chenguang Biotech Group to support working capital. Company is a supplier of plant-based extracts and additives with a host of American clients including Pure & Green Life and Mb Supplements
Researchers found job advertisements for admin positions in Chenguang’s wholly-owned subsidiary, Xinjiang Chenxi Pepper Industry Co, were required to be of “Han ethnicity”.
The company built facilities in Yarkant, a county in southern Xinjiang, “with the specific intent to ‘recruit poor labourers first’ through state-sponsored poverty alleviation and labour transfer schemes”, the report read.
Such labour recruitment programmes were “typically state sponsored and coercive assignments of impoverished people in low-skill/low-wage jobs, often against their will”, they added.
Another example: Camel Group Co, one of China’s largest battery manufacturers & supplier to Volkswagen, Ford, Audi and GM, borrowed US$81 million from the IFC and its private sector lending partners in 2019 to build recycling plants and upgrade existing Xinjiang facilities
Researchers found a “major gap in reporting” on the IFC’s strict environmental standards pertaining to the facilities, with due diligence failing to focus on “the risks specific to battery breaking or secondary smelting”.
Camel took part in “poverty alleviation” programmes in Xinjiang, including controversial labour transfer schemes
Uyghur workers recruited by Camel received “military and ideological training, and they were required to sing patriotic songs and learn the Chinese language”.
Such activities were billed as “closed pre-job training”, which “indicates that the participants were not allowed to come and go freely from the training”, they wrote.
Zhang Tuosheng, military researcher, says it would make US relationship "more difficult" and "China-EU relations would also be very troublesome... as they're all watching what stance China will take.”
China would "pay the price of a war" because of the effects on global economy
Respected state council adviser @ Renmin Uni Shi Yinhong said war would mean" the US will have to reduce its attention and resources to China in the Indo-Pacific"
But war would "radicalise world politics and "doom" China to an arms race.
As well as beef, China has also banned dairy and alcohol products from Lithuania, claiming Vilnius has not met compliance requirements for beef and dairy.
Claims Lithuanian companies "arbitrarily" tampered with beer labelling
Letter from Chinese customs to Lithuania’s State Food and Veterinary Services says Lithuanian beer companies "arbitrarily change production date & expiry date", accused of "counterfeiting"
"Lithuanian authorities don't pay attention to it which makes this risk more serious”
Formalises an unofficial ban on certain products which had been in place since late last year.
In December 2021, there were zero imports of dairy, beef or alcohol products from Lithuania, per Chinese customs stats.
There wasn't a huge amount in first place, but all gone now
On "woke" politics and the deterioration in Western-Chinese relations...
On the CAI and complaints over perceived US hijacking of the investment deal
"When the United States competes with China and Russia, it needs Europe to be its sidekick, so the Americans have mobilized their own network of relationships."
At a press conference this morning, EU trade commissioner Dombrovskis says that the WTO case will be dropped if China responds positively to requests to drop the coercion
He is hopeful that the anti-coercion instrument's legislative process can be concluded this year under the French and Czech presidencies of the EU
EU spent the past month interviewing Lithuanian businesses who had been blocked from Chinese market, after the government in Vilnius permitted the opening of a "Taiwanese Representative Office" in the capital.
EU feels it has gathered enough evidence to make a case in Geneva.
A request for consultation will be lodged. China may or may not enter bilateral talks with Brussels. It will then go to a dispute settlement panel
Both parties are signatories to the MPIA, alternative to the defunct appellate body, so this one can't be appealed into the void.
EU DG trade @WeyandSabine has just presented to the @EP_Trade committee on a proposed forced labour ban, which would of course have serious impact on China, given issues in Xinjiang.
Some takeaways 🧵
Weyand and EC seem keen to avoid the US model, which combines product-based bans with origin bans.
So in the case of Xinjiang, cotton products linked to Xinjiang, and also just Xinjiang products in general.
The "rebuttable assumption" places "a heavy burden" on the importer, which has to prove that it has no traces of forced labour in any product it imports that may have connection to the region and its cotton + other goods