Washington: Donald Trump, US President, announced on Wednesday that the United States will secure access to rare earth minerals and magnets from China under a new trade agreement, while tariffs on Chinese goods will increase to 55 per cent. In return, Trump stated the US will uphold its commitments, including allowing Chinese students to continue studying at American universities.
The announcement comes as global scrutiny intensifies over the ethical sourcing of critical minerals, particularly from China’s Xinjiang region. A report released Wednesday by Netherlands-based human rights group Global Rights Compliance reveals that dozens of international companies may be linked to forced labour in their Chinese supply chains.
According to the report, major global brands such as Walmart, Coca-Cola, Nescafé, Sherwin-Williams, and Avon risk sourcing minerals like titanium, lithium, magnesium, and beryllium from Xinjiang- a region where human rights organisations have alleged systemic coercive labour practices targeting Uyghurs and other Turkic Muslim minorities.
The report identifies 77 Chinese suppliers operating in these mineral sectors in Xinjiang and warns that many participate in state-run labour transfer programmes. These programmes have been widely criticised for reportedly forcing Uyghurs into factory labour as part of broader assimilation policies and mass surveillance efforts.
Products affected by this supply chain include commercial paints, thermos cups, and essential components for the aerospace, automotive, and defence industries, all of which could be tied back to Xinjiang’s mineral production.
“Mineral mining and processing in Xinjiang rely in part on the state’s forced labour programmes,” the report stated, urging companies to undertake rigorous supply chain audits and due diligence measures.
China’s Foreign Ministry strongly rejected the allegations, with spokesperson Lin Jian calling the report “a lie concocted by anti-China forces.” The ministry insisted that no one is forcibly transferred under the country’s labour programmes and accused rights organisations of politicising human rights to interfere in China’s internal affairs.
US-China agreed to restart trade negotiations following disruptions
The trade agreement and report follow a recent round of US-China talks held in London aimed at resolving disputes over mineral and technology exports. Both nations have agreed to restart trade negotiations, following disruptions that had threatened to derail progress achieved in earlier Geneva discussions.
This renewed focus on trade and supply chain transparency comes in the wake of the 2021 U.S. Uyghur Forced Labor Prevention Act, which bans imports from Xinjiang unless companies can prove their goods are free of forced labour. Initially focused on industries like solar energy and textiles, the law has since expanded to include aluminum and seafood.
Global Rights Compliance emphasised the urgency of the issue, noting China’s growing dominance in the global mineral market. The Xinjiang region remains a key supplier of beryllium, vital to defence and telecom sectors, and continues to see investment in lithium mining, a critical resource for electric vehicle batteries.
A recent International Energy Agency report also highlighted that global critical mineral supply chains are becoming increasingly concentrated in a few countries — with China playing a dominant role in both mining and refining.
As the US ramps up economic measures and negotiates mineral access through trade deals, the pressure is mounting on multinational corporations to ensure ethical sourcing and avoid complicity in human rights violations.
