A report to Congress, drafted by the Departments of Commerce (National Oceanic and Atmospheric Administration) and State, addresses the issue of human trafficking in the seafood supply chain. The Report lists 29 countries that are most at risk for human trafficking in the seafood sector –documenting the quantity and value of seafood imports from each listed country, and discusses seafood traceability programs in each listed country.

“The fishing sector has an inherently high risk for human trafficking. The work is considered hazardous and often relies heavily on a low-skilled, migrant, easily replaced workforce, vulnerable to trafficking. Fishing is also inherently isolating, with vessels sometimes spending months to years at sea, which impedes individuals’ escape from or reporting of abuse. Emotional and physical abuse, sometimes resulting in death; excessive overtime; poor living conditions; deceptive or coercive recruiting practices; and lack or underpayment of wages are examples of the abuses sustained by human trafficking victims in the fishing sector. Countries with weak legal protections for civil liberties and workers’ rights; high levels of corruption, crime, violence, political instability, poverty; and immigration policies that limit employment options or movement are at an increased risk for human trafficking. Illicit recruiters, unscrupulous vessel captains, and human traffickers exploit such conditions to perpetrate fraud, deception, and violence.”

The report points out that the PRC (People’s Republic of China) is a significant offender in the use of forced labor in its fishing sector, with numerous reports known on Chinese-flagged and -owned vessels throughout the world. “China has the largest fishing fleet in the world and contains a wide variety of vessels that operate on the high seas and in foreign countries’ EEZs (Exclusive Economic Zone) throughout the world. The majority of the crews on board are migrant workers from Indonesia and the Philippines but have also been noted to be from Africa and other Asian countries. According to the media, governmental and non-governmental reports, there have been numerous incidents of forced labor reported on Chinese fishing vessels. Workers report excessive working hours, poor living conditions, isolation at sea for months to years, verbal and physical abuse, nonpayment of wages, document, and debt bondage. Deaths have occurred as the result of abuse on these vessels. Workers are sometimes recruited by agencies that use deceptive tactics regarding their wages and contracts, and they are often required to pay recruitment fees and sign debt contracts. The Chinese fishing fleet is a major player in global IUU (illegal, unreported, and unregulated) fishing; crew members forced to engage in IUU activities on board these vessels are also at high risk of undue penalization. Fishing observers report insufficient oversight of the PRC’s fishing industry, which leaves fishermen at increased risk of forced labor.”

The Report also discusses current U.S. government efforts to combat human trafficking in the seafood industry, including enforcement mechanisms and provides ten recommendations for legislative and administrative action to combat human trafficking in this sector. Recommendations include outreach to listed countries, promoting global traceability efforts and international initiatives to address human trafficking, and strengthening collaboration with the industry to address human trafficking in the seafood supply chain.

Source: State Department, December 23, 2020
https://www.state.gov/report-to-congress-human-trafficking-in-the-seafood-supply-chain/

Moutai (aka Maotai) Liquor, one of China’s most famous baijiu, a 100 proof distilled spirit made of wheat and sorghum, often appears on the gift list of wealthy individuals, and sometimes of corrupt officials.

This year, the State-owned Assets Supervision and Administration Commission of Guizhou province, a government body responsible for managing state owned enterprises and also a 100 percent owner of the parent company of Kweichow Moutai, ordered the liquor producer to present a pricey holiday gift to the government of its home province — 4 percent of Moutai’s outstanding stock, or 50.24 million shares worth 91.95 billion yuan ($14.08 billion) at Thursday’s closing price of 1,830.34 yuan. The recipient is Guizhou Province State-owned Asset Operation, which undertakes large government investments and infrastructure projects.

After the event, the stake held by the parent company of the sorghum-based baijiu hard liquor producer declined to 54 percent, while Guizhou Province State-owned Asset Operation, together with its parent company Guizhou Financial Holding Group, held up to 4.9 percent of Moutai’s shares.

When interviewed by Nikkei Asia, Andrew Collier, managing director at Orient Capital Research in Hong Kong said, “China is increasingly asking its firms that are the most successful financially to contribute to state coffers.”  “Moutai has been wildly successful and has probably drawn some attention for its success, particularly as its home province is one of the poorest in China.”

One year ago, the parent of Kweichow Moutai also granted an equal number of shares to the same investment vehicle of the Guizhou government. The body kept hold of those shares until Moutai issued its annual dividend in June but has since sold more than 80 percent of the grant. Between the share sales and the dividend, the agency pocketed around 72 billion yuan ($11 billion).

Kweichow Moutai has been one of the best performers on the Chinese stock market. Its market value stands around 2.3 trillion yuan ($400 billion), with a net profit of 44 billion yuan ($6.7 billion) at the end of 2019.

Source: Nikkei Asia, December 24, 2020
https://asia.nikkei.com/Business/Food-Beverage/Chinese-province-gets-14bn-holiday-gift-of-Kweichow-Moutai-shares