Summary
In recent weeks, the US Congress has reintroduced two significant bills aimed at tackling the issue of forced labour within Chinese supply chains. The COBALT Supply Chain Act and the TASK Act seek to address these concerns with different strategies. This article provides an overview of these important pieces of legislation.
COBALT Supply Chain Act
The COBALT Supply Chain Act, reintroduced by Representative Chris Smith, targets cobalt mining in the Democratic Republic of the Congo, where a substantial amount of cobalt is sourced for electronics. The bill presumes that cobalt refined in China is made using forced or child labour, thereby restricting its importation into the US. Key points include:
- The Democratic Republic of the Congo accounts for about 70% of global cobalt production, heavily influenced by Chinese companies.
- Child labour is prevalent in the artisanal mining sector, with estimates suggesting 40,000 child miners.
- The bill would require the enforcement of tighter compliance checks on cobalt supplies and the entities involved in their production and importation.
TASK Act
The TASK Act, led by Senator Rick Scott, focuses on disclosure requirements for publicly traded companies regarding their supply chains. This includes:
- Mandating annual reports on sourcing activities related to products linked to forced labour.
- Information regarding any dealings with companies designated under US national security concerns.
- Transparency about the involvement of Chinese Communist Party committees in companies with operations in China.
Next Steps
Neither bill has made significant progress since their reintroduction. Both will need to navigate the lengthy Congressional process to become law. However, given the evolving geopolitical landscape, they remain relevant for sectors that may be impacted.
Key Points
- The US Congress has reintroduced two bills targeting forced labour in Chinese supply chains.
- The COBALT Supply Chain Act focuses on cobalt production linked to forced labour and child labour in the DRC.
- The TASK Act mandates disclosure from US companies about their sourcing practices related to forced labour.
- Both bills need to undergo thorough Congressional review before they can become law.
- Recent geopolitical developments could influence the movement and importance of these bills.
Why should I read this?
If you care about ethical sourcing and want to stay updated on significant legislative moves impacting global supply chains, this article is a must-read. Forced labour in supply chains is a pressing issue that affects many industries. Understanding the proposed measures will help you grasp the potential consequences for businesses and consumers alike.
