Europe's Chemicals Crisis: Xinjiang Forced Labor and Chinese Oversupply
Europe's chemical sector is pressured by high costs and Chinese oversupply, complicated by forced labor allegations in Xinjiang. Campaigners highlight ethical and economic challenges, urging stricter supply chain oversight. Rahima Mahmut's story underscores the human rights dimension. While the EU is implementing an import ban, UK regulations lag. The crisis demands greater transparency and due diligence to ensure ethically sourced chemicals and maintain industrial credibility.
The European chemicals sector is grappling with significant pressure due to high energy costs, carbon pricing, weakening demand, and growing global oversupply, particularly from China. This situation is further complicated by serious allegations of forced labor in China's Xinjiang Uyghur Autonomous Region, posing profound ethical, economic, and strategic challenges for European companies. The article features Rahima Mahmut, a Uyghur chemical engineer and activist, whose personal experiences with discrimination and surveillance in Xinjiang highlight the region's human rights crisis, including mass detentions and forced labor documented by international bodies.Key concerns include the involvement of major Chinese chemical conglomerates like Xinjiang Zhongtai, which is sanctioned by the US under the UFLPA for alleged participation in state-sponsored labor transfer programs. Companies such as BASF have divested from Xinjiang joint ventures due to surveillance allegations. While the potential use of forced labor may not significantly impact global prices, Xinjiang's abundant cheap coal and lack of environmental/labor protections make it an attractive production hub. Europe and the UK face the challenge of reconciling industrial competitiveness with human rights. The EU is introducing a forced-labor import ban by 2027, contrasting with the UK's reliance on voluntary corporate due diligence, deemed inadequate by parliamentary committees. Campaigners advocate for presumptive bans on Xinjiang goods. The article concludes by stressing that rigorous supply chain oversight is no longer merely regulatory but an ethical imperative for protecting human rights, corporate reputation, and the industry's long-term legitimacy.
