Xinjiang: Forced Labour

Baroness Northover Excerpts

Tuesday 19th January 2021 Lords Chamber

[Lord Collins of Highbury (Lab)]

My Lords, the serious human rights violations in Xinjiang are of enormous concern across all sides of this House. I welcome the Statement and the Government’s recognition of the need for the UK to act. However, it is disappointing that, once again, the Government have been unable to bring forward proposals for sanctions against those responsible for the abuses. We in this House have repeatedly asked whether they will apply Magnitsky-style sanctions to officials involved in the persecution of the Uighur Muslims, only to be told that they will not provide a running commentary on the designation of sanctions. The evidence of slave labour, in addition to forced detention and other serious abuses, is overwhelming. So, in the absence of such a proposal, can the Minister at least confirm whether discussions with global allies are taking place to prepare for sanctions like those already authorised by the US?

On the measures in the Statement, first, the Government have announced guidance to UK businesses on the specific risks faced by companies with links to Xinjiang. Such guidance is welcome but, unless it is legally enforceable, there may regrettably be some who do not feel the compulsion to comply. What representations has the Minister made to British companies that have supply chains running through the province, particularly those in the apparel industry? Considering that the European Union will introduce legislation next year on due diligence, does the Minister believe that such guidance should be legally enforceable?

Secondly, on changes to the operation of the Modern Slavery Act, I appreciate that the Foreign Secretary acknowledged that the Act is not working, and the proposed changes are welcome. Can the Minister indicate when we can expect the necessary legislation to be laid before Parliament, and will the affirmative procedure be used to allow both Houses to consider it in full? I hope that the Government will consider strengthening the Modern Slavery Act with more substantive changes; for example, Section 54 applies only to large companies with a turnover above £36 million. Do the Government intend to broaden the scope of the provisions?

Thirdly, on the guidance, is the Minister able to confirm that he is confident that this guidance alone is sufficient at this stage—or whether the Government intend to introduce necessary legislation to hold to account those who act against such guidance?

Finally, on the review of export controls, I warmly welcome this step. The Minister will be aware of the amendment to the Trade Bill, in my name and those of the noble Lords, Lord Purvis and Lord Alton, and the right reverend Prelate the Bishop of St Albans; that amendment is, of course, being considered by the Commons as I speak. Whatever the outcome of the Commons’ consideration of those amendments, I hope that the noble Lord will be able to explain tonight how the Government will ensure future trade agreements will not contribute to human rights abuses such as those in Xinjiang. The best way is to give Parliament proper opportunity to scrutinise, which it has not had with the rollover agreements we have seen since Brexit.

Whatever action we take must involve like-minded international partners. It is now over a year since the Government called for United Nations observers to be given “immediate and unfettered access” to Xinjiang to verify claims, and the Government of China continue to refuse. Can the noble Lord set out what steps the United Kingdom will take at the UN, including at the Human Rights Council, to hold the Government of China to account? What steps are being taken to support the appointment of a UN special rapporteur for the investigation of forced labour and ethnic persecution in Xinjiang?

In addition to the UN, there is the G7 in June of this year, which the UK is set to host. Can the noble Lord tell the House whether there are any plans to place the horrendous human rights abuse in Xinjiang on that agenda? The human rights violations in Xinjiang have shocked the world in recent months, and it is now time for the world to respond and act.

[Baroness Northover (LD) [V]]

My Lords, I too thank the noble Lord for bringing us this Statement. The Foreign Secretary describes an appalling situation, with which we have become familiar. It is vital that our businesses do not benefit from slave labour in Xinjiang or anywhere else. The possibility of genocide must always be at the forefront of our minds, not least as we come up to Holocaust Memorial Day.

The Commons is indeed currently considering the amendments to the Trade Bill that we sent there. Ministers have been saying that Parliament, not the courts, should decide on genocide in relation to trade agreements. The noble Lord usually says international courts should decide on genocide, but he also admits that this is impossible when it comes to China. Yesterday, in relation to Nagorno-Karabakh, he said that

“it is a long-standing government policy that genocide is a matter for judicial decision rather than for Governments or non-judicial bodies.”—[Official Report, 18/1/21; col. 991.]

That seems in line with the amendment in the Commons. He said, “judicial decision”, not “international judicial decision” or “Parliament”: could he comment?

The Chinese Communist Party has described the forced sterilisation of Uighur women as “emancipation”. The UN convention on genocide clearly forbids this. The noble Lord will know that under the convention, when a state learns, or should have learned, of the serious risk of genocide, it must take action. Is his department making an assessment in relation to the Uighurs, and will he publish its conclusions? Given that China blocks routes to international courts, does he agree that the United Kingdom has a responsibility to find alternative routes to make the legal determination?

The second area I want to ask about, as the noble Lord, Lord Collins did, is the Magnitsky sanctions. The Government always say they keep these under review. The Minister will no doubt say that today, yet the US applies such sanctions in relation to China. Why do we not? The Foreign Secretary noted last week:

“Of course, many countries are nervous in their dealings with China because of its asymmetric economic clout.”—[Official Report, Commons, 12/1/21; col. 173.]


That is indeed so. The noble Lord rightly says that sanctions are most effective when undertaken jointly with others. There are three major economic blocs in the world: the United States, China and the EU. We now have to work that much harder to gain traction among European allies, not just France and Germany, so what progress are the Government making here?

The last area that I want to ask the noble Lord about is in relation to company law. I worked on the Companies Act 2006. We included supply chains. Can the noble Lord explain why neither the Companies Act nor the Modern Slavery Act have proved sufficient here? Clearly, reputation is vital. I noted how quickly companies acted after the Rana Plaza disaster when they realised that their reputations were at stake. What about public procurement? Can we be sure that the PPE that we so anxiously sought during the pandemic did not come from Xinjiang? There were reports of some of it originating in North Korea. Who will monitor and act on the proposed new measures? Which Minister in which department? Will legislation be brought forward as indicated—and, if so, when—to close the loopholes that the Government clearly identify exist in the Companies Act and the Modern Slavery Act?

The European Union, as the noble Lord, Lord Collins, noted, intends to introduce legislation on due diligence, which will be mandatory. Are we working with it so that our standards are at least equivalent? Will this issue be considered at the G7 or D10, or however it is defined, in June? I look forward to hearing the noble Lord’s response and also to the questions and answers from noble Lords who have so much experience in this area.

[The Minister of State, Foreign, Commonwealth and Development Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, I thank the noble Lord, Lord Collins, and the noble Baroness, Lady Northover, for their welcome of the provisions that have been announced. I also reassure them that, as they will have seen, earlier today I was engaging with one of the key NGOs that I speak to on a regular basis on issues of human rights, with a specific focus on Xinjiang.

It is worth just taking a step back. I pay tribute to many in your Lordships’ House and in the other place, as well as other advocates around the world, in seeing where we have got to on this important issue, even over the last three years. There was a time where the issue of Xinjiang and the situation of the Uighurs was not often debated. However, because of the advocacy from across your Lordships’ House and in the other place, there is a real strength and a real momentum behind the actions we have seen in international action, with the United Kingdom working with key partners. We have also had rich debates on various Bills, as well as more generally as we are doing today on specific matters relating to the situation in Xinjiang. I pay tribute to all noble Lords and Members in the other place for their continued not just interest but strong advocacy, for that is what is required.

Picking up on some of the specific questions, first, on the issues raised by the noble Lord, Lord Collins, on guidance and working with businesses, from my own experience of the private sector over 20 years I think that the approach of successive Governments, because of the nature of the environment we work in, has always been to work with business and to offer guidance and structure so businesses can act. This new robust and detailed guidance to UK business sets out quite specific risks faced by companies with links to Xinjiang, underlining the challenges of effective due diligence—a point made by the noble Baroness, Lady Northover, as well. There will be a Minister-led campaign of business engagement—which was a point the noble Lord, Lord Collins, again raised—led by my right honourable friend the Home Secretary with an organised forum called the Business Against Slavery Forum made up of businesses, which I understand my right honourable friend the Foreign Secretary will also attend.

The noble Lord, Lord Collins, also raised sanctions and further designations, as did the noble Baroness, Lady Northover. I have to be consistent with what I said before: we keep the situation under review, across the world, because it is important in the new regime introduced by this Government that we continue to monitor abuses of human rights. I assure noble Lords that we will continue to act.

Answering a point that the noble Baroness raised about acting with key partners, we have carefully noted the action taken by the United States. We worked closely with the European Union during the transition period and, as we have come to the end of that, we will build a new engagement and relationship. As my right honourable friend the Prime Minister said, we want to be the closest ally and friend to the European Union, and we will work together on our shared values agenda.

As I have said—and I stand by this, as it is important for sanctions policy—there is sometimes no necessity for institutional frameworks, as we have seen and demonstrated in our relationships with Australia, Canada and the US. But it is important for relationships to be strengthened further. We will continue to work with all our allies, including the European Union, as we bring forward sanctions, across the world, to ensure that those who abuse human rights are held to account and suffer as a consequence.

The noble Lord, Lord Collins, talked of new legislation and confirmation through the affirmative procedure for some of the changes proposed to the Modern Slavery Act. My right honourable friend the Home Secretary will shortly bring forward details of those changes; these will be discussed through the usual channels. They will include further intent to impose financial penalties on businesses that do not comply with their transparency obligations in this respect.

The noble Baroness, Lady Northover, and the noble Lord, Lord Collins, both raised this issue. I go back to 2015, when my right honourable friend the Member for Maidenhead, Theresa May, was Home Secretary. I remember working directly with her on this ground- breaking Act, when we were spurred on by what was happening in the UK. This was well supported across all parts of your Lordships’ House. It set the premise and basis for actions that we can take today. Other countries, such as Australia, have followed the United Kingdom’s lead. Yes, more work needs to be done and more actions need to be brought, but the steps we are taking on Xinjiang underline our commitment to further strengthening the Modern Slavery Act. It was set up to ensure that we stop supply chains that abuse people’s human rights. We will make full use of and, where necessary, strengthen the provisions of that Act.

I also assure the noble Baroness, Lady Northover, that the Government will provide guidance and extend provisions to support all UK public bodies to use public procurement rules to exclude suppliers where there is sufficient evidence of human rights violations in supply chains. Compliance will be mandatory for central government, non-departmental bodies and executive agencies. We expect this to increase public sector bodies’ ability and willingness to exclude specific suppliers, and we expect increased scrutiny to drive up standards and due diligence. Again, the noble Baroness raised this point on companies supplying the Government.

Both the noble Lord and the noble Baroness raised international co-operation and continued advocacy. The noble Lord, Lord Collins, rightly raised action within the context of UN institutions, particularly the Human Rights Council. I look forward to engaging with him and the noble Baroness on this, as we look forward to the next Human Rights Council. The United Kingdom returns as a member, but it is also notable to see China returning. I assure your Lordships that we will focus on our agenda as we did at the previous Human Rights Council; our item 4 statement was specifically just on the issue in Xinjiang and Hong Kong. We will continue to retain focus and build momentum. We have seen success, as all noble Lords know, in the UN third committee, where 39 members, building on the 28 in June, supported our statement on the situation in both Xinjiang and Hong Kong.

On the G7 agenda, which was raised by both the noble Lord, Lord Collins, and the noble Baroness, Lady Northover, obviously we are working through the importance of the agenda. The Prime Minister recently announced that he himself will be hosting the G7 leaders in Cornwall, and of course the Foreign Secretary will be convening a meeting of G7 Foreign Ministers. As my right honourable friend the Foreign Secretary has said, the importance of the values agenda and of defending human rights will very much be factored into our thinking. As we are able to share some of the specifics of that agenda, I will of course do so.