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Supply chain scrutiny may upend EU solar ambitions
  + stars: | 2023-05-23 | by ( Lisa Jucca | ) www.reuters.com   time to read: +5 min
Western nations are rushing to install more solar panels to reduce their dependency on polluting fossil fuels like gas and oil. Yet a rising legislative tide aimed at ensuring companies’ supply chains are free from forced labour and other abuses presents a mounting challenge for Western utilities. Bernreuter estimates that non-Chinese solar-grade polysilicon is enough to produce 40 gigawatts of solar panels per year. Banned materials include polysilicon, an ultra-pure form of silicon, that is the key raw material used to make solar panels. The European Commission published in February 2022 a draft proposal aimed at forcing companies to better police their global supply chains.
Former NBA player Enes Kanter Freedom doesn't want to hear Elon Musk talk about free speech. The Turkish-American said Musk is "bowing down to a dictatorship" by blocking tweets in Turkey. "I don't want to hear about Elon Musk talking about free speech ever again," Freedom said on CNN This Morning. "Turkish government called Elon to pretty much tell him, 'If you don't ban a couple accounts, then we are going to shut down the whole app in Turkey,'" Freedom added. "The whole country is saying enough is enough because we want to go back to democracy and freedom again," Freedom said on CNN.
May 10 (Reuters) - The U.S. Department of Homeland Security this week raided a factory and sales office operated by one of the world's largest solar panel makers, China's Jinko Solar Holding Co Ltd (JKS.N), the agency said on Wednesday. Jinko, which is based in Shanghai, has a solar panel factory in Jacksonville, Florida, and a sales and operations office in San Francisco. The company is one of few global solar manufacturers that have set up domestic production in recent years. "Jinko Solar is committed to operating in accordance with the highest ethical standards and adhering to the laws and regulations of the countries where it operates, including the United States," the spokesperson said. Jinko shares slid 8% on Tuesday after the raid in Florida was reported by several local news outlets.
A shopper carries a bag of Nike merchandise along the Magnificent Mile shopping district on December 21, 2022 in Chicago, Illinois. WASHINGTON — A House committee examining the U.S. government's economic relationship with China is asking some of the world's largest clothing companies for information about the use of forced labor during production — a potential violation of U.S. trade law. Lawmakers asked retailers Temu, Shein, Nike and Adidas North America about the use of materials and labor sourced from the Xinjiang Uyghur Autonomous region of China, according to letters sent to company leaders on Tuesday. Such practices would constitute violations of the 2021 Uyghur Forced Labor Prevention Act, according to the lawmakers. The inquiries also follow a March hearing of the committee that included an expert assessment finding that U.S. companies finance "state-sponsored forced labor programs in the Uyghur region."
New York CNN —US Congress is stepping up the pressure on Chinese fast-fashion giant Shein. The United States has banned all imports from the Xinjiang region over concerns of the use of forced labor. Lawmakers “are demanding transparency and seeking independent verification — free from state influence — that the company does not use Uyghur forced labor,” according to the letter. A Shein spokesperson told CNN that the company has no suppliers in the Xinjiang region and it has zero tolerance for forced labor. The letter illustrates how Congress is scrutinizing Shein and rival fast-fashion app Temu amid their surging popularity in the United States.
WASHINGTON — Bipartisan lawmakers are urging the nation's top markets regulator to require Chinese fast-fashion giant Shein to disclose potential forced labor practices ahead of the company's possible initial public offering in the United States. "As a global company, Shein takes visibility across our entire supply chain seriously. We have zero tolerance for forced labor." "Other experts argue that it is appropriate to presuppose that any product made in the XUAR is made with forced labor." Independent coalition Shut Down Shein has also called on the SEC to deny IPO registration to Shein unless it provides proof of compliance with the Uyghur Forced Labor Prevention Act.
The U.S. lawmakers want the SEC to mandate Shein to independently audit and verify "that the company does not use Uyghur forced labor as a condition of being registered to issue securities in the United States," the letter said. Sources have said Shein is eyeing an IPO in the U.S. this year. Rights groups and governments have accused China of forced labor and internment of Uyghurs, a mainly Muslim ethnic minority, in Xinjiang. They say the exception allows websites selling cheap Chinese goods to evade millions of dollars in taxes and fees, as well as regulations banning forced labor in the consumer product supply chain. "As a global company, SHEIN takes visibility across our entire supply chain seriously.
Reuters GraphicsMany U.S. importers are still sanguine, but their supply chains could still be disrupted as Vietnam's apparel makers depend on China for about half of their input materials, according to the country's industry association. XINJIANG LINKSWhile the halted shipments represent a tiny portion of the $27 billion worth of garments and footwear Vietnam exported to the U.S. last year, compliance risks may lead to more painful adjustments for Vietnam. That, in turn, will hit U.S. consumers as Vietnam is their main source of cotton apparel, according to the U.S. Department of Commerce. However Nike has significantly reduced its output of apparel and footwear in Vietnam despite the country remaining its main manufacturing hub, according to its latest annual report updated to May 2022. Two officials from U.S. footwear and apparel industry trade associations said the new rules have had no major impact so far on Vietnam and blamed recent job cuts on lower global demand.
Reuters GraphicsMany U.S. importers are still sanguine, but their supply chains could still be disrupted as Vietnam's apparel makers depend on China for about half of their input materials, according to the country's industry association. XINJIANG LINKSWhile the halted shipments represent a tiny portion of the $27 billion worth of garments and footwear Vietnam exported to the U.S. last year, compliance risks may lead to more painful adjustments for Vietnam. That, in turn, will hit U.S. consumers as Vietnam is their main source of cotton apparel, according to the U.S. Department of Commerce. However Nike has significantly reduced its output of apparel and footwear in Vietnam despite the country remaining its main manufacturing hub, according to its latest annual report updated to May 2022. Two officials from U.S. footwear and apparel industry trade associations said the new rules have had no major impact so far on Vietnam and blamed recent job cuts on lower global demand.
Workers load cotton bales onto a truck in China’s Xinjiang region, home to the country’s Uyghur people. Researchers say Uyghur and other peoples in the region have been detained and forced to work by authorities. Photo: Wang Yawen/Zuma PressU.S. lawmakers on Tuesday scrutinized possible “loopholes” in an anti-forced labor law blocking many imports from China’s Xinjiang region, expressing bipartisan support for cracking down on companies with supply chains stemming from the region. Several lawmakers drew attention to potential gaps that might be allowing goods from a largely proscribed region of China to enter the U.S. as part of a hearing of the Congressional-Executive Commission on China. The hearing followed U.S. Customs and Border Protection reporting it has stopped nearly $1.1 billion in goods with possible links to Xinjiang, home to China’s Uyghur people and other minority groups, under the Uyghur Forced Labor Prevention Act.
Nike faces shareholder proposal on human rights
  + stars: | 2023-03-31 | by ( Katherine Masters | ) www.reuters.com   time to read: +3 min
NEW YORK, March 30 (Reuters) - Activist shareholder platform Tulipshare is calling on Nike (NKE.N) to offer more transparency on working conditions in its supply chain. In a shareholder proposal released Thursday, London-based Tulipshare requested a report from Nike on whether its policies effectively address its stated equity goals and human rights commitments. The company’s most recently available impact report from fiscal 2021 cites forced labor, supply chain transparency and labor rights as some of its essential priorities. “Nike did not engage with garment worker unions representing Nike supply chain workers about those impacts, despite the OECD Guidelines’ expectation that multinational enterprises do so and despite unions’ requests for dialogue,” the complaint states. In a fiscal 2022 statement on forced labor, Nike said it is growing its business "through long-term relationships with suppliers that are committed to our strict standards of sustainability and human rights, product excellence and compliance with local laws."
WASHINGTON, March 23 (Reuters) - A new U.S. congressional committee on China will hold its second hearing on Thursday, seeking to highlight what Washington says is an ongoing genocide against Uyghurs and other ethnic minorities in China's Xinjiang region. Rights groups accuse Beijing of abuses, including forced labor, mass surveillance and the placement of 1 million or more Uyghurs - a mainly Muslim ethnic group - in a network of internment camps in Xinjiang. China vigorously denies abuses in Xinjiang, and says it established "vocational training centers" to curb terrorism, separatism and religious radicalism. A United Nations report last year said China may have committed crimes against humanity in the region. Its top Democrat, U.S. Representative Raja Krishnamoorthi, told reporters that what happens to the Uyghur community in China affects Americans.
March 14 (Reuters) - U.S. customs officials have released more than a third of the electronic equipment, including solar panels, detained since last year under a new law meant to weed out products made with forced labor, according to data released on Tuesday. According to the data, CBP has released 552 electronics shipments worth $345 million out of a total of 1,627 industry shipments valued at $841 million that were held for examination. While it was unknown what percentage of those shipments are solar equipment, Reuters reported last year that as of late October, CBP had detained more than 1,000 shipments of solar energy equipment. Just 17 electronics shipments, worth $7 million, have been denied entry into the U.S. market. The data also shows detainments peaked in the federal government's fiscal fourth quarter that ended in September and have steadily declined since then.
[1/5] Plants grow through an array of solar panels in Fort Lauderdale, Florida, U.S., May 6, 2022. REUTERS/Brian SnyderMarch 6 (Reuters) - U.S. imports of solar panels are finally picking up after months of gridlock stemming from implementation of a new law banning goods made with forced labor, according to two Chinese solar companies. The gains are a relief to major Chinese suppliers including Trina Solar (688599.SS) and Jinko Solar (JKS.N), who are finally getting products into the lucrative U.S. market after long delays. Trina rival Jinko Solar Holding Co Ltd (JKS.N) has also had shipments released from detention, a source close to the company said. It would not specify how many of those were solar products.
[1/4] John Podesta, the White House senior advisor for clean energy, delivers a speech during the CERAWeek energy conference in Houston, Texas, U.S., March 6, 2023. REUTERS/Callaghan O'HareMarch 6 (Reuters) - U.S. imports of solar panels from Chinese suppliers are increasing as customs officials have clarified rules around complying with a new law banning goods made with forced labor, a White House official said on Monday. Trina Solar Co Ltd (688599.SS), a major Chinese solar manufacturer, told Reuters that more than 900 megawatts of solar panels has cleared U.S. customs in the last four months, with less than 1% of those products being detained for examination. Trina rival Jinko Solar Holding Co Ltd (JKS.N) has also had shipments released from detention, a source close to the company said. Reporting by Richard Valdmanis in Houston Editing by Chris Reese and David GregorioOur Standards: The Thomson Reuters Trust Principles.
Summary Customs delays, tariff uncertainty and soaring global demand have hiked solar costs and delayed projects as the U.S. weans itself off Chinese dependence. The Biden administration's Uyghur Forced Labor Protection Act (UFLPA) prevents the import of goods produced using forced labour in China’s Xinjiang Province, including much of the polysilicon used in solar panels. UFLPA checks have blocked panel imports at the U.S. border, delaying projects and driving up project costs. CHART: Solar manufacturing capacity by country, regionSource: International Energy Agency's Report on Solar PV Global Supply Chains, August 2022The UFLPA requires visibility into labour practices along the solar value chain. Lightsource bp has contracted for more than 20 million solar panels through 2028 and is considering imports from Southeast Asia, Turkey and India, Smith said.
U.S. Forced Labor Crackdown Is Tough, But Opaque
  + stars: | 2023-02-16 | by ( Richard Vanderford | ) www.wsj.com   time to read: +7 min
The U.S. has mounted an aggressive crackdown on imports over concerns about Chinese forced labor, but the campaign is an opaque one, with little detailed data on which companies or sectors are being targeted. January alone saw 282 shipments stopped over forced labor concerns, according to Customs data. Luis C.deBaca helped lead the U.S. fight against forced labor in the Obama administration and now teaches law at the University of Michigan. Photo: Luis C.deBacaChina has rejected allegations that it uses forced labor in Xinjiang. The agency added that it is “committed to transparency” and is developing an interactive web-based tool to provide forced labor enforcement statistics.
Vietnam posted a $116 billion trade surplus with the United States last year, led by shipments of goods such as electronics, clothing and footwear. The solar panel sector could be particularly at risk, as it greatly relies on polysilicon for solar cells, whose global production is concentrated in Xinjiang. Alongside other Southeast Asian countries, Vietnam accounts for about 80% of U.S. panel supplies, and Vietnam's panel exports to the United States were worth $3.4 billion in 2020. First Solar did not use polysilicon in its panels, but competitors in Vietnam did, he said, without identifying any companies. In addition to First Solar, the top solar panel makers in Vietnam are mostly Chinese companies, according to investment consultancy Dezan Shira.
China didn't accuse the US of violating international law when the Pentagon shot down its balloon. China has aggressively accused the US of breaking international law many times in the past. In the past, Beijing has accused the US of breaking international law even for actions like imposing visa restrictions on Chinese officials. "It contravenes international law and basic norms governing international relations and grossly interferes in China's internal affairs. In July, Wang similarly said that Hague Tribunal rulings in support of Philippine claims over the South China Sea "seriously" violated international law.
U.S. solar prices still soaring as projects stalled
  + stars: | 2023-01-31 | by ( ) www.reuters.com   time to read: +2 min
Jan 30 (Reuters) - U.S. solar energy contract prices have soared by a third over the past year as project developers have struggled to get imported panels, according to a report published late on Monday. But wind energy prices fell a little in recent months, thanks to major new federal subsidies. Wind PPA prices were 1.9% lower in the fourth quarter than in the third - their first decline since early 2021. The spike in solar prices resulted from the seizure by U.S. customs officials of hundreds of shipments of solar energy components at U.S. ports since June. Clark added, however, that demand was still strong for solar projects and that prices might stabilize in the second half of 2023.
The rules come as businesses, especially small and midsize companies, have a limited view of their supply chains and are struggling to broaden their oversight, sustainability analysts say. Imagine that in the landscape of supply chain,” said Tim Constable, partner at law firm Dentons advising companies on supply chains. There are a host of other regulatory developments threatening to affect companies’ supply chains. Photo: Chris Ratcliffe/Bloomberg NewsUnilever has a sprawling global supply chain, with around 54,000 suppliers in 150 countries. It doesn’t matter how sophisticated the program is.”Internet-of-things startups can go beyond aggregating data and instead track actual items.
The future has never been brighter for renewable energy, as some of the snags that kept wind and solar production from going full throttle this year seem poised to ease. What is more, by early 2025, the IEA said it expects renewable energy to be the largest source of electricity in the global power mix, surpassing coal. Driving the IEA’s rosier outlook: First is the global energy crisis caused by Russia’s invasion of Ukraine that led European nations to try to build more renewable energy capacity within their borders to improve their energy security and replace Russian fuel imports. But the climate-and-spending bill’s support for growth of the solar industry should reverse the recent spikes in PPA costs, he said. GridsLong waits for permits and permissions to build new grid infrastructure remain a challenge to getting more renewable energy.
In a letter sent to auto makers, Sen. Ron Wyden (D., Ore.) says the U.S. can’t compromise its commitment to upholding human rights. WASHINGTON—The Senate Finance Committee has opened an inquiry into whether auto makers including Tesla Inc. and General Motors Co. are using parts and materials made with forced labor in China’s Xinjiang region. In a letter sent Thursday, the committee asked the chief executives of eight car manufacturers to provide detailed information on their supply chains to help determine any links to Xinjiang, where the U.S. government has alleged the use of forced labor involving the Uyghur ethnic minority and others.
WASHINGTON, Dec 22 (Reuters) - The U.S. Senate Finance Committee asked eight major automakers, including General Motors (GM.N), Tesla (TSLA.O), Ford Motor (F.N), and Honda Motor (7267.T), to answer questions about their Chinese supply chains, according to letters made public on Thursday. Senate Finance Committee Chair Ron Wyden wrote the chief executives of major automakers inquiring about Chinese supply chain issues, saying "it is vital that automakers scrutinize their relationships with all suppliers linked to Xinjiang." Beijing denies abuses in Xinjiang, but says it had established "vocational training centers" to curb terrorism, separatism and religious radicalism. "Between raw materials mining/processing and auto parts manufacturing, we found that practically every part of the car would require heightened scrutiny to ensure that it was free of Uyghur forced labor," the report said. GM said Thursday it actively monitors its global supply chain and "conducts extensive due diligence, particularly where we identify or are made aware of potential violations of the law, our agreements, or our policies."
The Senate Finance Committee sent letters to car makers about their links to forced Uyghur labor. The Uyghur Forced Labor Prevention Act bans most imports from the Xinjiang region. The letters also come a year after President Joe Biden signed the Uyghur Forced Labor Prevention Act, which seeks to ban most imports from the Xinjiang region. A Honda spokesperson told Insider that it expects its suppliers to comply with its global sustainability guidelines and "will work with policymakers on these important issues." Volkswagen, Honda, General Motors, and Stellantis previously told Insider that they reject forced labor in their supply chains and take accusations of abuse seriously.
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