Social Scrutiny: Forced Labor: Trade focus and the localisation risk reset

研报英文原文证据摘录

Social Scrutiny: Forced Labor: Trade focus and the localisation risk reset

J P M O R G A N Asia Pacific Equity Research

18 June 2026

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Social Scrutiny

Forced Labor: Trade focus and the localisation risk

reset

Forced labor risk is moving back up the investor agenda as a trade lever in the U.S.,

with Section 301 pushing the issue from isolated company allegations toward

economy-wide pressure that can raise compliance costs and policy volatility for

exporters. At the same time, company risk profiles are changing as Chinese

automakers scale manufacturing in Europe, widening the stakeholder set and

raising political scrutiny precisely when ramp-ups are most prone to teething APAC Equity Thematic and

issues. We provide case studies on BYD and Fuyao Glass to walk through how Sustainable Investing Research

these issues can impact investment decision making. Hannah L Lee AC

(852) 2800-8886

• Forced labor is in focus in the U.S. with trade enforcement mechanisms. hannah.l.lee@jpmorgan.com

Section 301 proposals put forced labor “front and center”. Customs J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

Morgan Broking (Hong Kong) Limited

enforcement also looks set to tighten, which could translate into more

APAC Auto Research

downside from weak traceability. Even with a relative lull in UFLPA activity,

the recent Pop Mart allegations of links to Xinjiang cotton underlines that the Nick Lai

tail risk has not evaporated, and the market can move first and validate later. (65) 6801-3176