Due to the forced labor allegations, the United States has banned any cotton coming in due to the fact that China’s cotton is not traceable which eventually points to forced labor. It is no small fact that China is the world’s second largest cotton produce. In 2019, US$50 billion worth of textiles were imported by US from China according to the US Department of Agriculture and Rural Affairs.
Therefore, to provide a link for traceability so China can get back in touch with their one of the top exporters, Hong Kong & Shanghai Banking Corporation (HSBC) has offered a resolution that will enable the apparel industry to trace the origin of cotton and other raw materials in the industry’s supply chains as cotton exports from Xinjiang come under greater scrutiny by the US government.
Through this platform, the suppliers can give evidence and prove the authenticity of their products. The US has enacted several legislations aimed at countering alleged human rights violations of Uygurs and other ethnic minorities in Xinjiang, an autonomous region in China’s northwest. The main concern was that Xinjiang’s cotton was not traceable but now it will be due to HSBC.
“The platform adds greater visibility and transparency to the entire supply chain and helps consolidate data at each stage,” said Vivek, spokesperson from HSBC.
“The US Customs and Border Protection (CBP) has asked for up to almost 44 documents. Those documents can be shared by suppliers and supply chains over the platform. suppliers can get third party surveyors to validate the data and share them over the platform. Buyers – brands and retailers – can explore and send them to the US law enforcement agency. We do not do any accreditation, we just provide a platform for buyers and suppliers to share data” said Vivek, who was previously the global head of growth and innovation at HSBC in Hong Kong.
