The report analyses the current measures aimed at addressing the issue of forced labour in Xinjiang, China. The report identifies key themes and makes recommendations to improve the effectiveness of existing trade and financial measures.

The report highlights the challenges in defining forced labour linked to Xinjiang and how this hampers the identification of those responsible and the companies involved in the supply chain. As a result, the report suggests creating a shared consensus on what constitutes forced labour, with special focus on not giving too much credibility to Chinese narratives on Xinjiang.

Another central theme of the report is the limited impact that the current measures have on companies operating in Xinjiang. Although companies are engaging in enhanced due diligence, the steps taken at the moment fall short of halting the use of forced labour. Recommendations to improve effectiveness include sanctioning entities rather than goods, selecting targets based on vulnerability and influence, and expanding the coalition endorsing these sanctions. Furthermore, the report suggests integrating Xinjiang forced labour with Environmental, Social, and Governance (ESG) standards to prompt investors to be more cautious in financing entities associated with forced labour.

The report also discusses the role China’s state-backed organisations play in facilitating forced labour, specifically mentioning the Xinjiang Production and Construction Corps (XPCC). The report recommends that companies avoid doing business with firms related to XPCC, which is linked to multiple human rights violations and forced labour practices.

In conclusion, the report identified gaps that can be addressed to make sanctions against forced labour in Xinjiang more effective. Suggestions included a shared understanding of what constitutes forced labour, expanding the sanctioning coalition, targeting the most vulnerable and influential areas, targeting entities instead of goods, integrating Xinjiang forced labour with ESG standards, and avoiding doing business with XPCC-affiliated firms.