Parliamentarians across the European Union, United Kingdom, India, Australia and Canada have called on their governments to block investors from bankrolling firms perpetrating forced labour abuses in the Uyghur Region of China, following reports that HSBC has held shares in a subsidiary of the Xinjiang Production and Construction Corps (XPCC).
The 35 legislators, representing over 10 countries, urged their governments to draw up a blacklist of entities identified as perpetrating atrocities in the Uyghur Region, with firms barred from investing in blacklisted entities – as achieved by the US Department of Commerce Entity List.
The calls were made in a series of separate letters, attached, coordinated by the Inter-Parliamentary Alliance on China (IPAC) and sent last week. Prominent signatories include Reinhard Bütikofer MEP, chair of the European Parliament’s China delegation; Sir Iain Duncan Smith MP, former leader of the UK Conservative party; Australia Labor Senator Kimberley Kitching and Indian BJD MP Sujeet Kumar. The letters were addressed to the legislators’ respective finance ministers, including European Commissioner Mairead McGuinness and UK Chancellor Rishi Sunak.
The calls come after it was revealed that HSBC had purchased GBP £2.2 million of shares in Xinjiang Tianye, a plastics manufacturer owned by the XPCC. The XPCC, a Chinese state-operated paramilitary conglomerate, facilitates the Xinjiang’s coercive labour transfer programmes and operates many of the region’s so called ‘vocational training’ centres – where experts believe at least one million Uyghurs have been detained and subjected to abuses including, forced labour, torture and sexual abuse. IPAC members Senator Marco Rubio and Congresswoman Young Kim have since called for HSBC to be investigated for potential violations of US sanctions on the XPCC through this investment.
HSBC has previously come under fire from members of IPAC – an international cross-party network of some 200 legislators – for its role in freezing the assets of former Hong Kong opposition legislator Ted Hui in December 2020. The events led to HSBC being called before the UK Parliament’s Foreign Affairs Committee, where it was accused of abetting the Hong Kong government’s crackdown on the city’s pro-democracy movement.
Reinhard Bütikofer, German Green MEP and Co-Chair of IPAC said:
“We cannot ignore the role that big banks play in financing the abuses taking place in Xinjiang. If they are knowingly investing in firms perpetrating forced labour and other human rights abuses, then it is right that they should be held to account.”
“We are calling on the Commission to urgently bring forward measures to not only prevent goods made with forced labour from entering our markets, but also to prevent our banks from investing in them.”
Siobhain McDonagh, UK Labour MP and member of the Treasury Select Committee said:
“HSBC’s investments in Xinjiang Tianye demonstrate the deep ties between international finance and the Uyghur Region. It is completely unacceptable that banks like HSBC, which are headquartered and registered in the UK, should invest in groups perpetrating industrial scale human rights abuses against the Uyghurs. The UK government must act to stop British firms from bankrolling modern slavery in the Uyghur Region and elsewhere.”
TEXT OF LETTERS AND SIGNATORIES BELOW
EUROPEAN UNION
17 January 2022
Dear Commissioner Mairead McGuinness,
We write to express our concern at the investments made by international financial firms in entities perpetrating gross human rights abuses in the Xinjiang Uyghur Autonomous Region (XUAR) of China.
Last week it was revealed that banking firm HSBC has purchased shares in Xinjiang Tianye, a plastics manufacturer owned by the Xinjiang Production and Construction Corps (XPCC). The XPCC, a state-operated paramilitary conglomerate, facilitates the region’s coercive labour transfer programmes and operates many of the region’s so called ‘vocational training’ centres – where at least one million Uyghurs have been detained and subjected to abuses including, forced labour, torture and sexual abuse.
Despite its clear links to forced labour and other abuses, financial firms like HSBC that operate in the European Union continue to be free to invest in the XPCC and its subsidiaries. As a growing number of independent investigations, legal experts and parliaments internationally declare the abuses in the Uyghur Region to constitute Genocide and Crimes Against Humanity, these firms risk funding the perpetrators of the most egregious human rights violations.
In light of these abuses, financial funds must be encouraged to divest from entities perpetrating forced labour and other violations in the Uyghur Region. The Commission should draw up a blacklist of entities identified as complicit in these abuses and bar investment in these entities – as achieved by the US Department of Commerce Entity List.
As the human rights situation in the Uyghur Region continues to deteriorate, the Commission must also make clear the expectation that financial services will refrain from investing in entities complicit in perpetrating gross human rights abuses and mass atrocity crimes. Such a public statement of intent would encourage firms to consider their investments within their corporate and social responsibility plans.
The worst abusers of human rights globally cannot be allowed unfettered access to lucrative financial support internationally. We hope that the European Union can take the lead in putting a stop to this.
We look forward to your reply.
Yours sincerely,
Reinhard Bütikofer MEP (Germany)
Miriam Lexmann MEP (Slovakia)
Georges Dallemagne MP (Belgium)
Ms. Frédérique Dumas MP (France)
Uffe Elbaek MP (Denmark)
Engin Eroglu MEP (Germany)
Sandro Gozi MEP (France)
Karin Karlsbro MEP (Sweden)
David Lega MEP (Sweden)
Senator Michael McDowell (Ireland)
MEMBERS OF THE INTER-PARLIAMENTARY ALLIANCE ON CHINA
UNITED KINGDOM
17 January 2022
Dear Rt Hon Rishi Sunak MP,
We write to express our concern at revelations that HSBC, a bank headquartered and registered in the UK, has purchased shares in Xinjiang Tianye, a plastics manufacturer owned by the Xinjiang Production and Construction Corps (XPCC).
The XPCC is a Chinese state backed paramilitary organisation that has been subject to US government sanctions for its role in perpetrating atrocities in the Uyghur Region since July 2020. The XPCC operates many of the region’s so called ‘vocational training’ camps, where at least one million Uyghurs have been detained and subjected to violations including, forced labour, torture and sexual abuse.
By holding shares in Xinjiang Tianye HSBC could be in violation of the US government sanctions on the XPCC and its subsidiaries. However, as it stands, the UK has no similar legislation to prohibit HSBC and other UK firms from investing in firms perpetrating human rights abuses in the Uyghur Region.
In light of this, we urge the Government to draw up a blocklist of entities identified as perpetrating atrocities in the Uyghur Region and to bar UK firms from investing in them – as has been achieved by the US Department of Commerce Entity List.
We also ask that the Government meets with senior executives at HSBC to discuss whether trading with Xinjiang Tianye is in line with HSBC’s commitments under its own Modern Slavery Statement, as required under the Modern Slavery Act.
As the Uyghur people continue to suffer intolerable abuse at the hands of the Chinese government – which a growing number of independent legal experts believe to constitute Genocide and Crimes Against Humanity – we cannot allow our financial firms to bankroll these atrocities.
We look forward to your reply.
Yours sincerely,
Baroness (Helena) Kennedy
Rt Hon Sir Iain Duncan Smith MP
Rushanara Ali MP
Lord (David) Alton
Chris Bryant MP
Alistair Carmichael MP
Rosie Cooper MP
Janet Daby MP
Geraint Davies MP
Tim Loughton MP
Layla Moran MP
Siobhain McDonagh MP
Stuart McDonald MP
Wera Hobhouse MP
Marie Rimmer MP
Andrew Selous MP
MEMBERS OF THE INTER-PARLIAMENTARY ALLIANCE ON CHINA (UK)
AUSTRALIA
The Hon Josh Frydenberg MP
Treasurer
PO Box 6022
House of Representatives
Parliament House
Canberra ACT 2600
Email: [email protected]
17 January 2021
Dear Minister,
We write to express our concern at the investments made by international financial firms in entities perpetrating gross human rights abuses in the Xinjiang Uyghur Autonomous Region (XUAR) of China.
Last week it was revealed that banking firm HSBC has invested in Xinjiang Tianye, a plastics manufacturer owned by the Xinjiang Production and Construction Corps (XPCC). The XPCC, a state-operated paramilitary conglomerate, facilitates the region’s coercive labour transfer programmes and operates many of the region’s so called ‘vocational training’ centres – where at least one million Uyghurs have been detained and subjected to abuses including, forced labour, torture and sexual abuse.
Despite its clear links to forced labour and other abuses, financial firms like HSBC that operate in Australia continue to be free to invest in the XPCC and its subsidiaries. As a growing number of independent investigations, legal experts and parliaments internationally declare the abuses in the XUAR to constitute Genocide and Crimes Against Humanity, these firms risk funding the perpetrators of the most egregious human rights violations.
In light of these abuses, financial funds must be encouraged to divest from entities perpetrating forced labour and other violations in the XUAR. The Government should draw up a blacklist of entities identified as complicit in these abuses and bar investment in these entities – as achieved by the US Department of Commerce Entity List.
As the human rights situation in the XUAR continues to deteriorate, the Government must also make clear the expectation that financial services will refrain from investing in entities complicit in perpetrating gross human rights abuses and mass atrocity crimes. Such a public statement of intent would encourage firms to consider their investments within their corporate and social responsibility plans.
The worst abusers of human rights globally cannot be allowed unfettered access to lucrative financial support internationally. We hope that Australia can take the lead in putting a stop to this.
We look forward to your reply.
Yours sincerely,
Senator Kimberley Kitching
Senator James Paterson
Kevin Andrews MP
Senator Eric Abetz
Cassy O’Connor MP
George Christensen MP
MEMBERS OF THE INTER-PARLIAMENTARY ALLIANCE ON CHINA
INDIA
Dr. S. Jaishankar
Minister for External Affairs
Central Registry, South Block
New Delhi
21 January 2022
Dear Dr. S. Jaishankar,
We write to express our concern at the investments made by international financial firms in entities perpetrating gross human rights abuses in the Xinjiang Uyghur Autonomous Region (XUAR) of China.
This week it was revealed that banking firm HSBC has purchased shares in Xinjiang Tianye, a plastics manufacturer owned by the Xinjiang Production and Construction Corps (XPCC). The XPCC, a state-operated paramilitary conglomerate, facilitates the region’s coercive labour transfer programmes and operates many of the region’s so called ‘vocational training’ centres – where at least one million Uyghurs have been detained and subjected to abuses including, forced labour, torture and sexual abuse.
Despite its clear links to forced labour and other abuses, financial firms like HSBC that operate in India continue to be free to invest in the XPCC and its subsidiaries. As a growing number of independent investigations, legal experts and parliaments internationally declare the abuses in the Uyghur Region to constitute Genocide and Crimes Against Humanity, these firms risk funding the perpetrators of the most egregious human rights violations.
In light of these abuses, financial funds must be encouraged to divest from entities perpetrating forced labour and other violations in the Uyghur Region. The Government should draw up a blacklist of entities identified as complicit in these abuses and bar investment in these entities – as achieved by the US Department of Commerce Entity List.
As the human rights situation in the Uyghur Region continues to deteriorate, the Government must also make clear the expectation that financial services will refrain from investing in entities complicit in perpetrating gross human rights abuses and mass atrocity crimes. Such a public statement of intent would encourage firms to consider their investments within their corporate and social responsibility plans.
The worst abusers of human rights globally cannot be allowed unfettered access to lucrative financial support internationally. We hope that India can take the lead in putting a stop to this.
We look forward to your reply.
Yours sincerely,
Sujeet Kumar MP
Ninong Ering MLA
Amar Patnaik MP
Members of the Inter-Parliamentary Alliance on China (IPAC)
CANADA
The Honourable David Lametti
Department of Justice Canada
284 Wellington Street
Ottawa
17 January 2022
Dear Minister,
We write to express our concern at the investments made by international financial firms in entities perpetrating gross human rights abuses in the Xinjiang Uyghur Autonomous Region (XUAR) of China.
This week it was revealed that banking firm HSBC has purchased shares in Xinjiang Tianye, a plastics manufacturer owned by the Xinjiang Production and Construction Corps (XPCC). The XPCC, a state-operated paramilitary conglomerate, facilitates the region’s coercive labour transfer programmes and operates many of the region’s so called ‘vocational training’ centres – where at least one million Uyghurs have been detained and subjected to abuses including, forced labour, torture and sexual abuse.
Despite its clear links to forced labour and other abuses, financial firms like HSBC that operate in Canada continue to be free to invest in the XPCC and its subsidiaries. As a growing number of independent investigations, legal experts and parliaments internationally declare the abuses in the Uyghur Region to constitute Genocide and Crimes Against Humanity, these firms risk funding the perpetrators of the most egregious human rights violations.
In light of these abuses, financial funds must be encouraged to divest from entities perpetrating forced labour and other violations in the Uyghur Region. The Government should draw up a blacklist of entities identified as complicit in these abuses and bar investment in these entities – as achieved by the US Department of Commerce Entity List.
As the human rights situation in the Uyghur Region continues to deteriorate, the Government must also make clear the expectation that financial services will refrain from investing in entities complicit in perpetrating gross human rights abuses and mass atrocity crimes. Such a public statement of intent would encourage firms to consider their investments within their corporate and social responsibility plans.
The worst abusers of human rights globally cannot be allowed unfettered access to lucrative financial support internationally. We hope that Canada can take the lead in putting a stop to this.
We look forward to your reply.
Yours sincerely,
Hon. Irwin Cotler
Co-Chair of the Inter-Parliamentary Alliance on China (IPAC)
