Apple Says 'No Evidence' of Forced Labor at Key Chinese Supplier [Updated]

[MacRumors]

Apple says it has found no evidence of alleged forced labor at one of its key Chinese suppliers, after the U.S. government blacklisted O-film as part of its continuing crackdown on Chinese tech companies.

Tim Cook on a visit to a Chinese O-film facility in 2017​

Camera and touch module supplier O-film Group was one of 11 Chinese companies added to the U.S. Commerce Department's Entity List on Monday over alleged human rights abuses involving China's Uighur Muslim minority. Activists have also launched a campaign accusing firms of "bolstering and benefiting" from exploitation of the minority group.

Reports by U.S. Congress and the Australian Strategic Policy Institute (ASPI), among others, have found that thousands of Uighers have been transferred to work in factories across China under conditions that strongly suggest forced labor. The ASPI has inked the factories to over 80 brands, including Apple, Nike, and Gap.

However, Apple told BBC News on Thursday that it had investigated the claims against O-film and had not discovered anything untoward, despite conducting several surprise audits at O-film facilities.

"We have found no evidence of any forced labour on Apple production lines and we plan to continue monitoring," the firm said.

O-film has been part of Apple's supply chain since 2017, first for iPads and later for iPhones. O-Film currently supplies front-end camera modules and dual-camera modules for Apple's upcoming "iPhone 12" lineup.

The manufacturer has successfully competed for Apple's business by showing that it can meet the company's high quality standards, fending off rival camera module suppliers including Foxconn-owned Sharp of Japan and LG Innotek.

In December 2017, Apple CEO Tim Cook visited one of O-film's factories and praised the tech expertise and work culture, according to a press release on O-film's official website.

Nikkei Asian Review notes that Apple's 2019 suppliers list shows that three out of the four O-film facilities that supply Apple are in Nanchang, where the blacklisted subsidiary is located, although it's not clear if the subsidiary operates any of the facilities that directly supply Apple.

Update: According to DigiTimes' sources in the supply chain, O-film's shipments for Apple will not be affected by the blacklisting in the short term. The sources said O-film's Nanchang site supplies touch control solutions for Android handsets and has become an independent business entity since 2019, while O-film's camera modules for iPhones are mainly assembled at its main production base in China's Shenzhen.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Apple Says 'No Evidence' of Forced Labor at Key Chinese Supplier [Updated]

 

[scaramoosh]

No just forced Government.... that's much better!

 

[swingerofbirch]

If you're a Uighur and are under forced labor, you would probably make every attempt to make things look on the up and up for inspectors. What could Apple possibly do for you if you revealed the forced labor? Is Apple going to go toe-to-toe with the PRC to ensure you wellbeing? No, you would be returned to interment camps under worse conditions. Who knows what threats their families are under. This is state policy not individual corporate lapses in ethics, so I'm not sure why any company thinks they can take this on. Even you only do business with companies in China that don't have forced labor of Uighurs, are the Uighurs any better off? It sounds to me like China is trying to integrate them into the workforce to some extent and out of the interment camps. Saying you won't work with Uighur forced labor but are OK with other companies in China as long as the Uighur are in internment camps seems odd. Probably better not to do business with China.

 

[Greenmeenie]

No evidence? 😂 Um... Okay Tim. Keep living in your dream world. It’s amazing how blind these CEOs can be when it comes to China. Apple is the richest company in the world yet they still bow to China. it’s all about money. Sad.

 

[abhibeckert]

If you're a Uighur and are under forced labor, you would probably make every attempt to make things look on the up and up for inspectors.

Apple faces a similar issue with underage workers in China. They're typically one it two years too young and they want the job so they provide fake ID and use bribes.

Apple's inspectors are still able to catch it. Ask for proof and verify the proof hasn't been forged.

What could Apple possibly do for you if you revealed the forced labor?

It would be a breach of contract - which means Apple can cut ties with the company and not pay for whatever they manufactured - while also not allowing them to sell the goods to anyone else either (because it's all proprietary).

For nearly all components Apple has more than one supplier - which means they can drop them without any serious disruptions.

Given Tim Cook's track record on issues like this, I'm going to assume he's telling the truth. It's either very well hidden or they're not doing this at Apple factories where they know they will be subjected to close scrutiny.

 

[phalseHUD]

'There is no such concentration camp in Xinjiang'

China's ambassador to the UK is confronted with drone footage that appears to show Uighurs being blindfolded and led to trains.

www.bbc.co.uk

Absolutely disgusting that Apple isn’t doing all it can to rapidly move out of China, with this sort of stuff going on. Harks right back to Nazi Germany...

Apple is prepared to stand up for most forms of social justice causes, but conveniently ignores this sort of disgusting human rights abuse.

 

[ian87w]

No evidence? 😂 Um... Okay Tim. Keep living in your dream world. It’s amazing how blind these CEOs can be when it comes to China. Apple is the richest company in the world yet they still bow to China. it’s all about money. Sad.

Please do tell what do you think Apple, as a publicly traded company, do. Maybe you have a brilliant idea.
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'There is no such concentration camp in Xinjiang'

China's ambassador to the UK is confronted with drone footage that appears to show Uighurs being blindfolded and led to trains.

www.bbc.co.uk

Absolutely disgusting that Apple isn’t doing all it can to rapidly move out of China, with this sort of stuff going on. Harks right back to Nazi Germany...

Apple is prepared to stand up for most forms of social justice causes, but conveniently ignores this sort of disgusting human rights abuse.

I'm sure you have a grand plan in mind. Please do share on your plan on how Apple can "rapidly move out of China."

 

[phalseHUD]

No I don’t. I’m just an ordinary bloke with an ordinary job calling out what I see. Trade with a Country this vile, surely can’t continue.

As I said, if Apple can stand up for various social justice causes, surely they can divert some or even all of THEIR talent in this regard, to moving out of China as quickly as they can.

Do you have any ideas for a plan to move out of China, or do you think they shouldn’t bother?

 

[Marshall73]

Apple should look to move from China to India. Cheaper labour plus less grief from Trump. Don’t move the plants to the USA though, no skills and little education would end up with shoddy products. 😂

 

[ruka.snow]

No evidence? 😂 Um... Okay Tim. Keep living in your dream world. It’s amazing how blind these CEOs can be when it comes to China. Apple is the richest company in the world yet they still bow to China. it’s all about money. Sad.

Did you want them to find evidence? Did you plant some to push some kind of agenda? Apple could send out dozens of independent inspectors and even if they all came back nil, there would still be calls of shenanigans. Made in China covers a large array of products. Yes too many eggs in one basket, but it wasn't China that outsourced production.

 

[phalseHUD]

Apple could send out dozens of independent inspectors and even if they all came back nil, there would still be calls of shenanigans.

Suppose that shows just how much people in the West distrust the Chinese Communist Party and possibly even the companies that do business with them over there.

 

[mrochester]

No I don’t. I’m just an ordinary bloke with an ordinary job calling out what I see. Trade with a Country this vile, surely can’t continue.

As I said, if Apple can stand up for various social justice causes, surely they can divert some or even all of THEIR talent in this regard, to moving out of China as quickly as they can.

Do you have any ideas for a plan to move out of China, or do you think they shouldn’t bother?

The trouble is manufacturers can’t do that. There is nowhere else in the world that can do what China do precisely because China has been so heavily invested in for 30 years.

Even if Apple started investing that money into other economies it is by no means a quick fix (and I believe Apple has been investing heavily in India recently). Expect it to take 30+ years.

 

[ruka.snow]

Suppose that shows just how much people in the West distrust the Chinese Communist Party and possibly even the companies that do business with them over there.

Well that depends on the west. From what I gather its just the USA that distrusts China. In the EU we distrust USA produced goods just as much as anywhere else. In fact Made in the USA is very much something to avoid especially if it is anything to do with cars, with the whole thing about American cars not being able to turn corners. And when it comes to American tech there is always a suspicion it is riddled with spyware due to the whole NSA thing.

To put people at ease you'll likely find more US products being made regionally. As we are setting from the web as well with people being uneasy with their data being exported to foreign nations.

 

[mrochester]

Well that depends on the west. From what I gather its just the USA that distrusts China. In the EU we distrust USA produced goods just as much as anywhere else. In fact Made in the USA is very much something to avoid especially if it is anything to do with cars, with the whole thing about American cars not being able to turn corners. And when it comes to American tech there is always a suspicion it is riddled with spyware due to the whole NSA thing.

To put people at ease you'll likely find more US products being made regionally. As we are setting from the web as well with people being uneasy with their data being exported to foreign nations.

I’d prefer iPhones to be made in the UK. I trust neither China nor the USA.

 

[coldwaves]

"Reports by U.S. Congress and the Australian Strategic Policy Institute (ASPI), among others, have found......"

That pretty much tells you these reports are BS.
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Well that depends on the west. From what I gather its just the USA that distrusts China. In the EU we distrust USA produced goods just as much as anywhere else. In fact Made in the USA is very much something to avoid especially if it is anything to do with cars, with the whole thing about American cars not being able to turn corners. And when it comes to American tech there is always a suspicion it is riddled with spyware due to the whole NSA thing.

To put people at ease you'll likely find more US products being made regionally. As we are setting from the web as well with people being uneasy with their data being exported to foreign nations.

Agree! I personally do not see why some people are so hyped about made in US quality. My personal experience is that "made in US" is often of inferior quality for the same price than made in China or India or Mexico. Sometimes, even for the same price, made in US is not necessary of better quality. For example, Ford makes its sedan Fusion at its Flat Rock factory in Michigan and the Hermesillo factory in Mexico. The models from the Flat Rock factory has more recalls than the ones made in Hermesillo.

 

[crawfish963]

As long as Apple continues to bend over backwards to appease China and continues to utilize Chinese labor, none of their green initiatives mean a thing.

 

[mrochester]

As long as Apple continues to bend over backwards to appease China and continues to utilize Chinese labor, none of their green initiatives mean a thing.

Moving all of your production to a different country and having to build huge new facilities would be even less green! Does that mean no one should bother with any green initiatives?

It’s not helpful to look at these things in a simplistic way as it doesn’t help anything. It’s better to do something beneficial working within the constraints you have to work within than doing nothing.

 

[willzyx]

There is no forced labor. Chinese government officials told me.

 

[boswald]

Whenever I see pictures like this, I wonder what it's like to work in a "clean room", with hazmat suits, building phones and computers...

 

[Mansu944]

Well that settles that.

 

[DeepIn2U]

Not a tinfoil hate guy or one that follows into someone else’s dislike for another just cause a government says I should, but Apple should heavily reconsider.

I can’t imagine the amount of cost (flights, visas, organizing etc) and bad press that damages the brand for every 1 of these news bites regarding their suppliers that Apple suffers just to prove wrong or right doing. It’s time to look for very capable suppliers elsewhere if possible and if not then work with new suppliers elsewhere that can handle the negotiation supply variant costs and demand.

 

[citysnaps]

Absolutely disgusting that Apple isn’t doing all it can to rapidly move out of China, with this sort of stuff going on. Harks right back to Nazi Germany...

Such drama. How do you know Apple isn't doing "all that they can?" Your claim requires some proof. Please provide.

So many experts here...

 

[Vanilla35]

No I don’t. I’m just an ordinary bloke with an ordinary job calling out what I see. Trade with a Country this vile, surely can’t continue.

As I said, if Apple can stand up for various social justice causes, surely they can divert some or even all of THEIR talent in this regard, to moving out of China as quickly as they can.

Do you have any ideas for a plan to move out of China, or do you think they shouldn’t bother?

They do have a plan and are actively moving in that direction. They're moving into India, for most of the manual labor.

 

[SoGood]

Hypocritical for the US-led coalition to try to attack China's management of Uighur islamic extremism. The US with a bunch of countries could illegally invade countries based on lies, smother countries' decades of development and kill 300,000+ innocent civilians just in Iraq alone, yet it's jumping up and down over China's domestic management of islamic extremism. And these US/West funded and supported entities are just as good at making up stories as those Iraqi 'exile' groups through those WMD stories. Just pathetic! So sad to have Apple and other corporations to get caught up in these frivolous geopolitical stories.

 

[russell_314]

I support what China is doing to promote the safety of its citizens. I think this is about all I would be allowed to say in this form without it being deleted.
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They do have a plan and are actively moving in that direction. They're moving into India, for most of the manual labor.

Apple is going to India so they can sell phones in India. India puts a huge tariff on imported phones so they can promote manufacturing in their own country