A corporate ethics watchdog in Canada has initiated separate investigations into Nike, the sporting goods company, and Dynasty Gold, a mining firm, over allegations of utilizing forced labor from China's Uyghur minority. Nike Canada and Dynasty Gold, both based in Vancouver, are accused of having supply chains or operations in China that involve or have involved the use of Uyghur forced labor, according to a statement from the Canadian Ombudsperson for Responsible Enterprise (CORE).
These investigations were prompted by complaints filed by a coalition of 28 civil society organizations in June of the previous year, targeting the overseas operations of 13 Canadian companies. This marks the first instance in which the Canadian agency has launched an investigation since establishing its complaint mechanism in 2021, with no other agencies in Canada having conducted similar probes. Meanwhile, CORE continues to investigate the complaints against the remaining 11 companies and is expected to release their reports in the upcoming weeks.
Ombudsperson Sheri Meyerhoffer emphasized that she has not prejudged the outcome of the investigations, expressing concern about the response of these companies to the allegations. Meyerhoffer stated that the agency will await the results and publish final reports containing her recommendations. It is important to note that CORE, established in 2017, primarily focuses on investigating human rights violations by Canadian garment, mining, and oil and gas companies operating abroad, without possessing legal powers to prosecute guilty companies.
How Nike and Dynasty Gold Have Responded to the Allegations
Regarding the allegations, Nike Canada is suspected of maintaining supply relationships with Chinese companies implicated in using or benefiting from Uyghur forced labor. Nike asserts that it has severed ties with these companies and provided information on its due diligence practices. On the other hand, Dynasty Gold is accused of benefiting from the use of Uyghur forced labor at a mine in China where it holds a majority interest. The company responded to the complaint, stating that it lacks operational control over the mine and that the allegations arose after it left the region. In an email response to Reuters, Dynasty Gold dismissed the allegations as "totally unfounded."
In recent years, numerous American and Canadian companies have faced accusations of utilizing forced labor from Uyghur Muslims, an ethnic minority in China. The UN High Commissioner for Human Rights has described the treatment of Uyghurs in China as crimes against humanity. However, Beijing denies these allegations and claims that the facilities in question are vocational centers aimed at countering extremism.
What is the Current Situation with China's Uyghur Minority?
Multiple human rights organizations, have accused the Chinese government of detaining over a million Uyghurs and other ethnic minorities in internment camps or what the Chinese government refers to as "vocational training centers." The Chinese government initially denied the existence of these camps but later characterized them as part of a necessary counter-terrorism and deradicalization campaign.
Various reports have documented harsh living conditions, restrictions on cultural practices and religious beliefs, forced labor, forced assimilation, forced sterilizations, and other abuses within these camps. The treatment of Uyghurs has been described by some experts and human rights advocates as amounting to crimes against humanity and genocide, although this is a contentious and debated assertion.
China has maintained that its policies in Xinjiang are necessary to combat terrorism, separatism, and extremism. The Chinese government has consistently denied allegations of human rights abuses and instead claims to be providing vocational training and employment opportunities to uplift the region's population and promote stability.