TRADE UNIONS RAISE ALARM OVER ALLEGATIONS OF FORCED LABOUR IN XINJIANG PRODUCTION OF SOLAR COMPONENTS

ABC News. 21 April 2021

Below is an article published by ABC News. Photo:Carlos Barria/File.

Australian trade unions are calling for the federal government to invest in local manufacturing of solar energy components in Australia, amid growing concerns that solar products from China could be linked to forced labour.

It follows increasing pressure on the Biden administration from American unions to impose an import ban on solar products manufactured in China’s north-western Xinjiang region — where the ruling Chinese Communist Party (CCP) is accused of mass human rights abuses against the ethnic Uyghur population and other Muslim minorities.

“The treatment of Uyghurs and other ethnic minorities in China, particularly in the Xinjiang region is known to involve human trafficking and forced labour,” Australian Council of Trade Unions (ACTU) President Michele O’Neil told the ABC.

“The federal government and businesses must take immediate action to ensure they are not complicit or profiting from forced labour in Xinjiang or anywhere else in the world,” she said.

The CCP vehemently denies all allegations of forced labour in Xinjiang

China accounts for around 80 per cent of the world’s supply of solar-grade polysilicon — a key component in the production of solar cells — according to German-based solar industry observer Johannes Bernreuter.

Xinjiang alone accounts for roughly 45 per cent of global solar-grade polysilicon output, he said.

And around 80 per cent of solar photovoltaic (PV) panels installed in Australia are sourced from China, according to Australia’s Clean Energy Regulator.

“South Korea is the second highest [supplier to Australia] with approximately 4 per cent and the USA at approximately 3 per cent,” a spokesperson for the Clean Energy Regulator said.

More than 2.5 million Australian households have solar panels installed, according to the Clean Energy Council — with a record 378,451 systems installed in 2020 alone.

“Given Xinjiang’s global share of 45 per cent in solar-grade polysilicon production, the growth of solar PV installations is partly burdened with human rights violations,” Mr Bernreuter told the ABC.

The AFL-CIO, the United States’ largest federation of trade unions, is demanding President Joe Biden’s government stop imports of solar energy products from Xinjiang.

“As the US seeks to address climate change, we must not allow the CCP to use forced labour to meet our nation’s needs,” AFL-CIO president Richard Trumka said in a letter to US Secretary of State Anthony Blinken in March.

Mr Trumka called upon US Customs and Border Protection to immediately impose a so-called withhold release order — as was imposed on Xinjiang tomatoes and cotton products in January — to ensure polysilicon products from Xinjiang are detained and blocked from entry into US ports.

“The Biden administration and Congress must act to block imports of solar products that contain polysilicon made with forced labour,” Mr Trumka said.

Asked about Mr Trumka’s letter, Chinese foreign affairs spokesman Zhao Lijian said: “There is not a grain of truth in the absurd allegation that there is ‘forced labour’ in Xinjiang.”

“Such an allegation was made to hold back the development of the relevant Chinese side and Chinese companies,” he said.

US Senators Marco Rubio and Jeff Merkley have also written to the country’s solar lobby requesting information on the extent to which the US solar supply chain is reliant on components produced in Xinjiang.

Responding to forced labour allegations, major Chinese polysilicon producer Daqo said in January that it located its facilities in Xinjiang in order to be close to sources of raw materials and energy for polysilicon production.

“The company considers the idea of employing ‘forced labour’ or ‘prison labour’ as not only morally abhorrent but also wholly inconsistent with its goals to be successful in terms of safety, efficiency and costs,” it said.

“We believe that solar professionals and anyone in the United States or elsewhere who has basic understanding and common sense of the polysilicon industry will likely share this view.”

The Chinese state-run tabloid Global Times has opined that accusations of forced labour in the solar manufacturing industry are part of a “malicious campaign” by “anti-China forces to destroy Xinjiang’s rapidly ascending economy and ultimately obstruct the development of China”.

China, which is the world’s largest emitter of CO2, has pledged to go carbon-neutral by 2060.

Nevertheless, it remains heavily reliant on fossil fuels, including in the production of polysilicon.

London-based energy and climate research group Ember reported that China generated more than half of the world’s total coal-fired power in 2020.

“Polysilicon manufacturing consumes a lot of energy,” said Kate Clayton, an international relations researcher at La Trobe University.

Carsten Rohr is vice-president of business development at the Norway-based manufacturer of solar components, NorSun.

Dr Rohr said the company had used polysilicon from Western countries from its inception, “first of all because of the quality, and secondly because of the lower carbon footprint which is increasingly important”.

“Recently concerns about forced labour have been raised which adds to the benefits of sourcing from Western countries,” he said.

“Our customers value these points as supply chain issues are becoming more important.”

The International Energy Agency reported in 2020 that Australia had the highest per capita solar capacity in the world at 600 watts per capita.

The ACTU’s Ms O’Neil said the federal government should invest in solar panel manufacturing in Australia to create “secure jobs and reduce our involvement in forced labour overseas”.

“Australia currently lags behind the US, UK and Canada in ensuring products are not bought from forced labour centres in Xinjiang and they must act immediately to rectify this,” she said.

The EU, UK, Canada and US in March launched coordinated sanctions against officials implicated in abuses against Uyghurs.

Foreign Minister Marise Payne welcomed the move, but Australia did not join its Western allies in imposing sanctions.

Ms O’Neil said the federal government should ban “all imported goods produced or manufactured through forced labour” and strengthen the 2018 Modern Slavery Act by introducing penalties for companies failing to take action against forced labour and modern slavery in their supply chains.

Analysts are sceptical that Western sanctions are likely to solve the issue of forced labour, however.

“Even if the US government and the European Union impose new sanctions, polysilicon capacity in non-Xinjiang regions [in China] is enough to fulfil module demand from these two regions,” Cooper Chen, an industry analyst with PV InfoLink, wrote in January.

“However, it appears unlikely that all overseas markets will stop using products that contain materials from Xinjiang.”

Mr Bernreuter agreed, saying that while some countries might impose import bans, “production capacity in Xinjiang cannot be replaced immediately by new plants”.

“China will use polysilicon from Xinjiang for domestic solar installations anyway,” he said.

“At every step of the solar panel production manufacturing chain, China are the biggest producers,” Ms Clayton of La Trobe said.

“Policymakers, activists and the public will need to reconcile whether or not reducing greenhouse gas emissions is worth the cost of being complicit in genocide.”

The ABC has approached the Australian Border Force and Department of Foreign Affairs and Trade for comment.

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