IIB 116TH CONGRESS 2D SESSION H. R. 6270 IN THE SENATE OF THE UNITED STATES OCTOBER 1, 2020 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs AN ACT To amend the Securities Exchange Act of 1934 to require issuers to make certain disclosures relating to the Xinjiang Uyghur Autonomous Region, and for other pur- poses. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 21:14 Oct 05, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H6270.RFS H6270 pamtmann on DSKBC07HB2PROD with BILLS 2 HR 6270 RFS SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Uyghur Forced Labor 2 Disclosure Act of 2020’’. 3 SEC. 2. FINDINGS. 4 Congress finds the following: 5 (1) Since early 2017, the Government of the 6 People’s Republic of China has conducted a policy of 7 disappearance, mass internment, and imprisonment 8 of Turkic Muslims, particularly Uyghurs, in China’s 9 Xinjiang Uyghur Autonomous Region (XUAR). 10 (2) Since 2014, Chinese authorities have de- 11 tained between 800,000 and possibly up to three 12 million Uyghurs, ethnic Kazakhs, Kyrgyz, and other 13 ethnic minorities in forced education, training, and 14 labor camps. 15 (3) The bi-partisan, bi-cameral Congressional- 16 Executive Commission on China’s 2019 Annual Re- 17 port found numerous reports of forced labor associ- 18 ated with government repression of ethnic minority 19 groups in the XUAR. Detainees performed forced 20 labor in factories both within and outside of intern- 21 ment camps in XUAR. 22 (4) Radio Free Asia reported in January 2019 23 that authorities had also sent Uyghurs and Kazakhs 24 from the XUAR to other provinces in China for 25 forced labor. 26 VerDate Sep 11 2014 21:14 Oct 05, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6270.RFS H6270 pamtmann on DSKBC07HB2PROD with BILLS 3 HR 6270 RFS (5) Comments in March 2018 from the presi- 1 dent of the China National Textile and Apparel 2 Council suggested that textile manufacturers were 3 working with XUAR authorities to exploit forced 4 labor. 5 (6) Companies that work in the XUAR are at 6 great risk of complicity in the human rights abuses 7 being committed in the region. 8 (7) In a March 2020 report, the Australian 9 Strategic Policy Institute identified 27 factories in 10 nine Chinese provinces that are using Uyghur labor 11 transferred from Xinjiang. These factories indirectly 12 supply global brands, including many American mul- 13 tinational companies. 14 (8) Forced labor in XUAR is Chinese govern- 15 ment policy and due diligence efforts to ensure clean 16 supply chains is nearly impossible due to mass sur- 17 veillance, pervasive police presence, and intimidation 18 of workers. 19 SEC. 3. DISCLOSURE OF CERTAIN ACTIVITIES RELATING TO 20 THE XINJIANG UYGHUR AUTONOMOUS RE- 21 GION. 22 Section 13 of the Securities Exchange Act of 1934 23 (15 U.S.C. 78m) is amended by adding at the end the 24 following: 25 VerDate Sep 11 2014 21:14 Oct 05, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6270.RFS H6270 pamtmann on DSKBC07HB2PROD with BILLS 4 HR 6270 RFS ‘‘(s) DISCLOSURE OF CERTAIN ACTIVITIES RELAT- 1 ING TO THE XINJIANG UYGHUR AUTONOMOUS REGION.— 2 ‘‘(1) IN GENERAL.—Not later than the end of 3 the 180-day period beginning on the date of enact- 4 ment of this subsection, the Commission shall issue 5 rules to require each issuer required to file an an- 6 nual report under this section or section 15(d) or a 7 proxy statement under section 14 to disclose in each 8 such report or proxy statement whether, during the 9 period covered by the report or proxy statement— 10 ‘‘(A) the issuer or any affiliate of the 11 issuer, directly or indirectly, engaged with an 12 entity or the affiliate of an entity to import— 13 ‘‘(i) manufactured goods, including 14 electronics, food products, textiles, shoes, 15 and teas, that originated in the XUAR; or 16 ‘‘(ii) manufactured goods containing 17 materials that originated or are sourced in 18 the XUAR; 19 ‘‘(B) with respect to any goods or mate- 20 rials described under subparagraph (A), wheth- 21 er the goods or material originated in forced 22 labor camps; and 23 VerDate Sep 11 2014 21:14 Oct 05, 2020 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H6270.RFS H6270 pamtmann on DSKBC07HB2PROD with BILLS 5 HR 6270 RFS ‘‘(C) with respect to each manufactured 1 good or material described under subparagraph 2 (A)— 3 ‘‘(i) the nature and extent of the com- 4 mercial activity related to such good or 5 material; 6 ‘‘(ii) the gross revenue and net prof- 7 its, if any, attributable to the good or ma- 8 terial; and 9 ‘‘(iii) whether the issuer or the affil- 10 iate of the issuer intends to continue with 11 such importation. 12 ‘‘(2) AVAILABILITY OF INFORMATION.—The 13 Commission shall make all information disclosed 14 pursuant to this subsection available to the public on 15 the website of the Commission. 16 ‘‘(3) REPORTS.— 17 ‘‘(A) ANNUAL REPORT TO CONGRESS.— 18 The Commission shall— 19 ‘‘(i) conduct an annual assessment of 20 the compliance of issuers with the require- 21 ments of this subsection; and 22 ‘‘(ii) issue a report to Congress con- 23 taining the results of the assessment re- 24 quired under clause (i). 25 VerDate Sep 11 2014 21:14 Oct 05, 2020 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H6270.RFS H6270 pamtmann on DSKBC07HB2PROD with BILLS 6 HR 6270 RFS ‘‘(B) GAO REPORT.—The Comptroller 1 General of the United States shall periodically 2 evaluate and report to Congress on the effec- 3 tiveness of the oversight by the Commission of 4 the disclosure requirements under this sub- 5 section. 6 ‘‘(4) DEFINITIONS.—In this subsection: 7 ‘‘(A) FORCED LABOR CAMP.—The term 8 ‘forced labor camp’ means— 9 ‘‘(i) any entity engaged in the ‘mutual 10 pairing assistance’ program which sub- 11 sidizes the establishment of manufacturing 12 facilities in XUAR; 13 ‘‘(ii) any entity using convict labor, 14 forced labor, or indentured labor described 15 under section 307 of the Tariff Act of 16 1930 (19 U.S.C. 1307); and 17 ‘‘(iii) any other entity that the Com- 18 mission determines is appropriate. 19 VerDate Sep 11 2014 21:14 Oct 05, 2020 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H6270.RFS H6270 pamtmann on DSKBC07HB2PROD with BILLS 7 HR 6270 RFS ‘‘(B) XUAR.—The term ‘XUAR’ means 1 the Xinjiang Uyghur Autonomous Region.’’. 2 Passed the House of Representatives September 30, 2020. Attest: CHERYL L. JOHNSON, Clerk. VerDate Sep 11 2014 21:14 Oct 05, 2020 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H6270.RFS H6270 pamtmann on DSKBC07HB2PROD with BILLS