Human rights organizations have reported that rare earth minerals in China are produced using forced labor. This comes as President Trump lauded a recent agreement with President Xi Jinping that simplifies the supply of “full magnets and necessary rare earths” to the United States.
A report from Global Rights Compliance (GRC), which focuses on humanitarian rights issues, highlights how the oppressed Uyghur population in the New Jiang region has been coerced into mining vital minerals. This practice is seen as crucial for maintaining China’s position as a leading global producer.
Rare earth minerals play essential roles in various sectors, including technology, crude oil extraction, hybrid cars, nuclear reactors, batteries, and military applications like fighter jets and missiles.
The report suggests that the abundance of coal and the absence of environmental regulations in the Uyghur region are likely to turn it into a hub for energy-intensive mining and processing operations. Furthermore, the report indicates that unregulated mineral distribution channels often allow these mined or processed minerals to slip into the global supply chain. China claims to produce 30 out of 44 essential minerals used in the U.S.
Consequently, the global economy risks exposure to products associated with forced labor and significant carbon footprints, the report states.
In light of environmental challenges, President Trump issued an executive order in March designed to “unleash American energy,” which includes plans for offshore drilling, increased coal production, and a revival of nuclear energy. His efforts to lower costs nationally may impact foreign labor, including that in China, according to the GRC report.
The report asserts that reliance on coal, lack of labor and environmental standards, along with hidden distribution centers, enables the suppression of production costs for goods made in the Uyghur region, creating an uneven playing field for legal enterprises.
It is noted that around 40% of China’s coal reserves are located in the Xinjiang region. The United States has emerged as the fifth-largest export market, with a year-on-year growth of 283.1% in 2024, bolstered by increased exports to Poland and the UK.
Since 2022, the Biden administration has been developing a blacklist of companies believed to employ the Uyghur population for forced labor, affecting their trade relations with the U.S.
The GRC report argues for continued identification of forced labor usage in the region and a conscious effort to reduce global dependence on minerals produced there. They recommend that the government enforce transparency measures requiring companies to disclose key raw material suppliers and document GPS coordinates of operations in the supply chain.
The report also advocates for prioritizing sectors such as titanium, lithium, beryllium, and magnesium under the Uyghur Forced Labor Prevention Act, calling for these products to be included in the list associated with child and forced labor.
