European solar companies avoid forced labor in Xinjiang

European solar companies avoid forced labor in Xinjiang

China is reportedly running forced labor programs in the solar powerhouse of Xinjiang. Despite this fact, European solar companies continue to purchase products from China, but are consciously focusing on avoiding goods from Xinjiang. Xinjiang is known for its role in China's solar industry and allegations of forced labor there, particularly against members of Muslim minorities such as the Uyghurs. The US has banned all imports from Xinjiang from the end of 2021 using the Uyghur Forced Labor Prevention Act unless they can provide proof of freedom from forced labor.

Due to this situation, Xinjiang becomes a challenging problem for the industry. While opponents of Chinese imports are urging Brussels to ban imports from Xinjiang, the European Solar Association ESMC is calling for the planned EU regulation banning forced labor products on ethical grounds to come into force quickly. This has led European solar companies to establish Xinjiang-free supply chains in China to ensure no forced labor is involved.

The German supply chain law, which is already in force, requires companies to keep their supply chain free of human rights violations such as forced labor. At the same time, the stricter EU supply chain law is in the final stages of the process. These laws force buyers to rethink and ensure that there are no violations in their value chains. China has begun separating supply chains for exports and domestic production, with Xinjiang having a share of China's polysilicon. However, there are options for purchasing outside the region to avoid forced labor. China is itself working to build a Xinjiang-free supply chain to meet the demands of the international market.