Victorian Premier Daniel Andrews. Source: AP
The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

  • The Victorian Premier has denied forced labour is being used to manufacture the state’s newest rail cars
  • Victoria signed a deal with Chinese train manufacturer CRRC — which is part of the Evolution Rail consortium — to build 65 trains for the metro network
  • However, CRRC has been linked to the Chinese Government’s Uyghur camps, where over a million people are believed to be detained
  • The U.S. Government has blacklisted a CRRC subcontractor, known as KTK, which was using those detained to provide free labour
  • But, Daniel Andrews said he’s been assured the Uyghur aren’t being used to manufacture the trains for Victoria

The Victorian Premier has been forced to deny that minority ethnic groups detained in China are being forced to manufacture trains for the state.

Uyghur

Over a million people are believed to be detained across China in forced labour camps, all of whom are either Uyghurs, Kazakhs or from other Muslim backgrounds.

Daniel Andrews denial comes as reports emerge that some people within the Chinese Government’s Uyghur forced labour camps were being made to work for free for the KTK Group, a subcontractor for CRRC.

KTK lists the rail transport manufacturer as one of its customers — and CRRC is the business in charge of creating Victoria’s newest trains.

Specifically, the Andrews Government awarded CRRC a $2 billion contract back in 2016 to create 65 new trains for its wider metro network.

Denial

However, the Premier said the allegation of forced labour had surfaced before and there was absolutely no evidence of it being true.

“We have sought assurances that that is not an accurate statement in relation to the work that we have contracted them to do and we’ve received those assurances,” Daniel Andrews said.

The U.S. Government has taken a more hard-line stance to the issue — with the Department of Commerce blacklisting KTK Group this year because of the forced labour links.

The blacklisting essentially means KTK cannot buy components from U.S. companies without government approval.

The Victorian Opposition has called on the government to walk away from the deal, which is already 18 months behind schedule.

“If there’s a risk that Victorian trains are being built with forced labour overseas that is a disgraceful stain on this government,” Opposition Leader Michael O’Brien said.

More From The Market Online
Two zombie works sit at an office desk.

The ASX’s zombies problem has halved in the last 6 months – in all but 3 sectors

There's been a 41% decline in "zombies companies" listed on the ASX over the last six…
Michele Bullock appears alongside a Melbourne Cup racegoer and an inflation graph going up.

Race winners yes, rate cuts no: Zero chance Melbourne Cup day brings RBA trim after this CPI print

Today's inflation reports have all but confirmed the Reserve Bank won't be touching the cash rate…

Scalare Partner’s up 44% on todays news

Scalare Partners (ASX: SCP) announced a strategic collaboration with U.S. semiconductor accelerator Silicon Catalyst and the…