Letter to MSCI on Minimizing Evidence of VW's Uyghur Forced Labor

Chairman John Moolenaar (R-MI) and Ranking Member Raja Krishnamoorthi (D-IL) of the House Select Committee on Strategic Competition Between the United States and the Chinese Communist Party, alongside U.S. Senators Marco Rubio (R-FL) and Chris Coons (D-DE), sent a letter to MSCI's President Henry Fernandez outlining significant concerns after the firm removed its forced labor red flag for Volkswagen's factory in China.

The Volkswagen factory in Xinjiang is known for using Uyghur forced labor, which has tainted our nation’s supply chains with modern day slavery and benefits the Chinese Communist Party. This led MSCI, an American finance company, to grant Volkswagen a “red flag” rating in 2022. However, MSCI recently relied on a flawed audit. Because of this, MSCI made the erroneous decision to lift Volkswagen’s “red flag” rating. 

The lawmakers write, “As you are aware, the Chinese Communist Party (CCP) is currently committing genocide against Uyghurs and other predominantly Muslim ethnic groups in the XUAR. The CCP has subjected these populations to detention, forced sterilization, forced abortion, brainwashing, and several forms of forced labor. As a result, the XUAR operates what experts assess to be the world’s largest contemporary system of state-imposed forced labor, with more than two million people at risk.”

They continue, “Despite widespread concerns surrounding the audit, including concerns from the auditors themselves, MSCI decided in December 2023 to lift the 'red flag' rating on Volkswagen. Volkswagen has continued to partner with certain companies in the PRC that appear to use forced labor since the lifting as well.”

View the lawmakers’ letter to MSCI HERE