Distinguished members of the subcommittee, thank you for holding this hearing and offering me an opportunity to speak. I'm happy to see you engaged on such an important and pressing topic.
As noted, I'm the director of the human rights initiative at the Center for Strategic and International Studies, a large non-partisan think tank based in Washington, D.C. Over the past year my program has been conducting research on forced labour in the Xinjiang Uighur Autonomous Region, or XUAR.
Our work combined open-source research in Mandarin with interviews with those subjected to forced labour. Our findings to date have confirmed that forced labour practices in the region are part of the Chinese government's efforts to repress ethnic and religious minorities through what they call re-education. Forced labour also combines with widespread surveillance in the region.
Because China plays such a dominant role in many international supply chains, products entering the U.S., Canada, Europe and other countries are at risk of being tainted by forced labour. Today I'll explain how forced labour in XUAR is part of a larger system of ethnic minority repression and is relevant to western supply chains, and we'll provide some policy recommendations that might help effect change.
As has already been documented, the Chinese government has forcibly detained and held in extrajudicial detention facilities, also known as re-education camps, more than one million Muslim minorities in this region. The goal is to cut the minorities' ties to their religious and cultural identities and bring them into mainstream Han Chinese culture. This is seen as a way to enhance stability in the region.
The Chinese government's clampdown on ethnic minorities is believed to be the largest-scale detention of religious minorities since World War II, and according to the U.S. Holocaust Memorial Museum, may amount to crimes against humanity.
In the name of combatting religious extremism and enhancing security in the region, the government subjected minority detainees to re-education and vocational training within and outside of the detention facilities. As you've probably heard earlier today, this training includes intensive Mandarin classes, praising the CCP, and in many cases, job training.
As the government goes through this process, factory work has revealed itself to be an integral element of the effort. The government has used labour transfer programs to move thousands of minorities into manufacturing positions in XUAR's factories and in other Chinese provinces where they are, in some cases, subjected to forced labour. The full extent of the forced labour is impossible to know because access to the region is so limited.
This re-education campaign is closely linked to the government's poverty alleviation and pairing programs. The poverty alleviation program seeks to move minorities from their traditional rural villages into factory work. The government requires local officials to meet quotas of rural minorities transferred to work, and that creates pressure to find people to transfer, whether or not they want to go.
Because of the high level of surveillance in XUAR and the risk of being sent to a detention camp or prison, it is presumed to be very challenging for ethnic minorities to resist transfers. The government also provides financial incentives for companies to re-educate and employ ethnic minorities. Our research and interviews indicate that at least some of those transferred to work are not doing so willingly, and are often significantly underpaid. This, in turn, raises serious forced labour concerns.
These re-education efforts and poverty alleviation programs I discussed are combined with what's called the government's pairing program. Under this program mainland Chinese provinces are partnered with specific regions of XUAR. Each pairing program has a sectoral focus based on the needs of pairing mainland firms, including the textile, electronic and agricultural sectors, among others. Those companies that are in the pairing program are pressured to open factories in XUAR and may be asked to receive minority workers, both within XUAR and in their factories in the rest of China. Some of those workers have been re-educated, some are re-educated in detention facilities and others are part of poverty alleviation. Again, because we don't have access to the region, it's really hard to know just the scope of forced labour within these programs and within these companies participating in the pairing program.
We've been doing some research on what XUAR produces. It's a key cotton producer, but it also produces and exports a number of other products, including electronics and machinery, plastics, apparel and agricultural goods. These sectors are all priorities in the pairing program. There's a question of whether this is creating a risk of forced labour in these other supply chains as well, and this deserves further research.
I just want to touch briefly on XUAR's role in global supply chains, looking particularly at textiles and apparel as a case study, because we understand those linkages better. I would note that other sectors may also include substantial components from XUAR.
XUAR produces around 20% of the world's cotton and is the third-largest producer of cashmere in China. China is the world's largest cashmere producer. We have found that XUAR directly exports few products globally. Rather, they're transformed within China, in many cases. Apparel was 25% of XUAR's international exports in 2019, and footwear was another 10%, but this severely understates XUAR's role in supply chains. Most of the cotton, for example, is shipped to other regions of China to then be incorporated into yarn, textiles, etc., and this is much, much harder to trace.
One challenge is that China is one of the world's two largest cotton producers, the world's largest yarn producer, its largest textiles producer and its largest apparel producer. Because XUAR cotton, and increasingly, yarn, are incorporated—