U.S. bars Taiwan-made Giant bicycles over forced labor concerns

Washington, Sept. 24 (CNA) United States Customs and Border Protection (CBP) on Wednesday issued an order barring bicycles, bicycle parts and accessories made by Giant Bicycles in Taiwan over evidence of forced labor.

CBP said it had issued a withhold release order (WRO) to detain shipments of bicycles made in Taiwan by Giant -- the world's largest bicycle manufacturer -- under a law prohibiting goods made with forced labor from entering the United States.

The order does not appear to apply to Giant Bicycles made outside of Taiwan. The company also has manufacturing facilities in China, Vietnam, Hungary and the Netherlands.

CBP said an investigation of Giant had identified forced labor indicators, including abuse of vulnerability, abusive working and living conditions, debt bondage, withholding of wages and excessive overtime.

"Giant profited by imposing such abuse, resulting in goods produced below market value and undercutting American businesses by millions of dollars in unjustly earned profits," a statement announcing the order said.

The statement did not provide details of the CBP investigation. However, a report by the U.S. Department of Labor based on 2024 interviews with Vietnamese and Thai migrant workers at Giant's Dajia District, Taichung factory identified multiple forced labor risks.

These included debt bondage risks due to home-country recruitment fees and deposits, monthly service fees to Taiwanese labor brokers, withholding of wages, abusive living conditions, and intimidation and threats, the report said.

The report said the company had taken steps to remedy some of the issues, such as by stopping the withholding of wages, renovating its workers' dormitories and planning to implement a zero-fee policy from January 2025.

Although Giant was "communicative and partially committing" regarding the concerns, it "reject[ed] fee reimbursements," meaning that the debt bondage risk was "still real," the report concluded.

Taiwan government and Giant Bicycles response

In a statement issued late Wednesday, Taiwan's Ministry of Economic Affairs pledged to work with the Ministry of Labor to "quickly resolve any possible forced labor concerns" in order to get the ban lifted.

"As a responsible member of global supply chains, Taiwan has long attached great importance to improving labor conditions, and will continue to work with the Ministry of Labor to create a worker-friendly environment," the ministry said.

Meanwhile, Giant Bicycles said Thursday that it was "actively clarifying the facts" of the situation and would work to get the ban lifted.

The company noted that it had implemented a "zero recruitment fee policy" in January of this year, under which it paid the recruitment, brokerage and government-related fees for all newly-hired foreign workers.

It also completed renovations of its workers' dormitories in late 2024, providing "safer and more comfortable" living conditions, and introduced an internal control system to ensure its operations meet international labor standards, according to the statement.