High risk of forced labour in the production of trains and trams in China
A report released by ETI Sweden, in collaboration with four Swedish Public Transport Authorities, highlights significant risks of human rights violations, including state-imposed forced labour, in the manufacturing of trains and trams in China. The findings underscore the complexities of global supply chains and ownership structures involved in the production process, with China emerging as a pivotal manufacturing hub.
Download the full report.
Download the executive summary.
Download the executive summary in Swedish.
Download the company responses.
About the report
Rail-bound transport plays a crucial role in the green transition in Sweden. The increasing demand for public transport implies a growing need for investments in new and more efficient trains and trams. The supply chains and ownership structures within the global manufacturing of trains and trams are complex. China has emerged as a major manufacturing country and reports of human rights risks in the Chinese supply-chains have escalated in recent years.
Commissioned by the working group on electric vehicles within ETI Sweden, the report investigates the risk of human rights abuses in the Chinese supply-chain of trains and trams. Recently, a similar investigation highlighted human rights risks in the production of electric buses and batteries in China.
The research has been conducted by not-for-profit analytic company Globalworks by analysing social media posts and official documents, websites, and news sources. The report reveals alarming patterns of systematic and widespread risk of state-imposed forced labour, affecting not only Uighur populations in Xinjiang but also other ethnic minorities, impoverished households, and vulnerable groups such as underage interns. The findings emphasize the urgent need for collective action to address and manage human rights risks.
”With this report, we aim to raise awareness of the high risk of human rights abuses in train and tram supply chains and we want to strengthen the collaboration on sustainable procurement of public transportation in Sweden” – Christopher Atapattu Riddselius, Acting Director, ETI Sweden.
Conclusion and next steps
The report concludes that there are significant challenges to effectively addressing human rights risks in China, exacerbated by increased state repression and limited opportunities for reliable social audits.
Public Transport Authorities, companies, and stakeholders are encouraged to explore innovative approaches to identify, monitor, and mitigate these risks, driving meaningful change within the production of trains and trams. The working group on electric vehicles within ETI Sweden will continue to work with the issue and explore further collaboration.
Business & Human Rights Resource Centre has invited 15 of the companies mentioned in the report to respond to its findings. The company responses are published here.
Recommendations
To Public Transport Authorities:
- Unless already adopted, implement clear requirements in public procurements of locomotives and rolling stock, aligned with internationally recognized human rights – understood, at a minimum, as those expressed in the International Bill of Human Rights and the principles concerning fundamental rights set out in the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work.
- Exploit the full range of tools presented in the EU Directives on Public Procurement and the Swedish Public Procurement Law regarding setting social criteria in public contracts.
- Ensure adequate resources are allocated internally for continued due diligence measures, including once contracts have been awarded, to follow up on requirements set in the tender process, track performance of suppliers and respond to potentially new developments and/or information.
- Seek collaboration with other public contracting authorities, also outside of Sweden, to build leverage and common approaches to setting social criteria in public procurements of locomotive and rolling stock.
To companies in the locomotive and rolling stock sector:
General recommendations:
- Establish robust human rights due diligence measures, aligned with international standards (UNGPs and OECD Guidelines), addressing risks in own operations and across the full value chain.
In relation to the report’s findings regarding forced labor:
- Due to the severity and irremediability of the impacts and the inability to enact change, as soon as possible disengage from, and implement a company policy not to source from, or enter into joint ventures with, entities that meet any of the following criteria :
- operating in the primary or secondary sector located in Xinjiang, Tibet and Tibetan autonomous prefectures in Sichuan and Qinghai,
- participating in state-organized labor transfer/poverty alleviation programs from the same regions,
- owned or controlled by the Xinjiang Production and Construction Corps (XPCC), a state-owned enterprise and paramilitary organization.
- sourcing from companies tainted with forced labor based on credible research.
- Engage with locomotive and rolling stock companies in the value chain to address wider identified risks related to forced labor, in order to gradually de-risk Chinese supply chains.
In relation to the report’s findings regarding working conditions:
- Actively engage with business partners and other stakeholders to address the full scope of identified risks related to working conditions, using, and building leverage across the value chain and prioritizing risks based on the severity of the impacts.
- Where impacts have already occurred, and been identified, engage with business partners and affected stakeholders to enable remedy for the harm.
Contact
For questions about the report or ETI Sweden’s work, please contact Malin Kjellqvist on malin.kjellqvist@etisverige.se