Canada launched an inquiry into allegations over the use of the Chinese minority Uyghur forced labor in Nike and Dynasty Gold operations. The Canadian Ombudsperson for Responsible Enterprise Sheri Meyerhoffer announced the inquiry Tuesday as a part of a broader initiative to evaluate and probe substantial grievances against corporations operating within Canada.
As part of the ongoing investigation, the Meyerhoffer alleges that both Nike and Dynasty Gold have derived advantages from the utilization of coerced labor involving Uyghurs, which constitutes a human rights violation. While the initial evaluation stipulates that Nike has not engaged in the direct utilization of such labor, Nike’s association with Chinese third-party entities does not absolve it of accountability. Conversely, Nike contends that it has terminated relationships with Chinese third-party companies implicated in employing coerced labor.
Also implicated in the inquiry, Dynasty Gold faces allegations of employing coerced labor of Uyghurs at a mining site located in China. The initial evaluation finds that the company’s denial of operational control over the mine at Hatu, Xinjiang region, “should not be taken at its face value,” as Dynasty still possess a controlling interest in the operation.
Though Nike and Dynasty Gold were specifically mentioned in Tuesday’s announcement, the investigation extends beyond the two companies. Eleven other prominent corporations operating within Canada are also currently undergoing scrutiny.
The broader international community continues to condemn China’s treatment of the ethnic and religious minority residing in northwestern China. Previously, in September 2022, an independent UK-based tribunal found that Chinese authorities detained and tortured hundreds of thousands of Uyghurs in “re-education camps,” which have been characterized by some as concentration camps. It is within these re-education camps that the alleged forced labor practices are employed, purportedly, as a part of the “re-education” process.
Forced labor is strictly prohibited under international law, encompassing human rights norms and a range of international treaties. Notably, in September 2022, the UN Office of the High Commissioner for Human Rights (OHCHR) accused China of actions that “may constitute international crimes, in particular, crimes against humanity” in its mass detention of Uyghurs in Xinjiang province, under the auspices of anti-terrorism or anti-extremism policies.
The US government has consistently advocated for China to prohibit the utilization of forced labor concerning the Uyghur population, employing sanctions as a primary means of leverage. Canada—along with other nations—aligns with this endeavor, prompting investigations to curtail the prevailing trend of human rights violations.
