U.S. lawmakers press Justice Department for overdue report on Chinese labor practices in auto supply chain

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US lawmakers press for China labor report

Highlights

Four U.S. House lawmakers urge the Justice Department to provide an overdue report on Chinese labor practices in the auto supply chain, required by an appropriations bill passed in January and sought by June 19.
Raids in 2024 at Fuyao's Moraine, Ohio factory and other China-affiliated automotive plants in Ohio and Georgia follow accusations of $126 million illegal staffing, money laundering, and unfair employment practices.
Lawmakers cite a broader pattern of abuse by CCP-linked firms in the U.S. auto sector, requesting rigorous DOJ investigations into possible trade and labor law violations.

Congressional push over delayed DOJ review

As first reported by CNBC, Khanna and three other House lawmakers sent a letter on Wednesday to acting Attorney General Todd Blanche demanding an update on the report, which was due in May. Congress required the Justice Department review in an appropriations bill that President Donald Trump signed into law in January, and the lawmakers requested a response by June 19.

The bipartisan letter was signed by Khanna, Shontel Brown, Scott Perry and Mike Kelly. The lawmakers say the stability and security of the U.S. auto supplier industrial base is critically important as thousands of American auto manufacturing workers face job losses while companies tied to the Chinese Communist Party expand their presence across the country.

In the letter, the group says claims by Chinese companies that they support domestic employment are overshadowed by credible reports of labor trafficking, forced labor and unlawful employment practices. Khanna says the request follows meetings with workers, manufacturers and union leaders who told him American jobs are being hurt by companies linked to the CCP that are not competing fairly and are using illegal labor practices.

Scrutiny falls on China-linked auto manufacturers

The lawmakers specifically point to Fuyao, which has been accused by auto glass manufacturer Vitro of undercutting prices and pushing out competition. Federal law enforcement in 2024 raided Fuyao's factory in Moraine, Ohio, as part of a civil forfeiture complaint tied to an investigation into a potential $126 million illegal staffing and money laundering operation.

The letter also highlights a raid at an automotive manufacturing plant in Ohio operated by Qingdao Sunsong and another at a Wellmade Industries facility in Georgia. The lawmakers say these cases do not appear to be isolated incidents, but instead suggest a broader pattern of abuse by CCP-linked companies or their affiliates operating in the United States.

They urge the DOJ and partner agencies to rigorously investigate whether expanding China-linked automotive supply firms are violating U.S. trade and labor law. The department does not immediately respond to a request for comment.

Our earlier coverage of the White House’s tariff proposal linked to a forced-labor probe outlined a plan to impose duties of at least 10% on imports from more than 60 countries. We noted the administration framed the move as a way to protect U.S. workers and domestic manufacturing by tightening trade enforcement around labor-rights standards in global supply chains. The proposal also pointed to higher costs and added uncertainty for companies dependent on international sourcing.

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